Response Insurance Review: Auto Insurance Customer Complaint Statistics & AM Best Ratings

This Response Insurance review will evaluate, for the most recent five year period where reliable statistics are available (2009, 2010, 2011, 2012, & 2013), the auto insurance complaint ratings for the subsidiary companies of Response Insurance, to determine whether each subsidiary, such as Response Worldwide Insurance Company or Warner Insurance Company, has a better-than-average, average, or worse-than-average customer complaint record. I’ll look at increases & decreases in market share (as measured by annual written premiums) for each Response operating company, as a possible indication of the competitiveness of their insurance rates. Lastly, this review will compare the auto insurance complaint records for the Response subsidiary companies, with major competitors, like State Farm, Allstate, Progressive, GEICO, & Farmers. You may really like your auto insurance company, or you may have heard from relatives or friends about the insurance companies they think are best, but you never really know how good your insurance company will be, until you have a serious claim. The good news is many insurance companies settle a good portion of their claims in a manner acceptable to the majority of their customers. However, the wise consumer should avoid insurance companies with a worse than average history of auto insurance complaints. This review provides valuable information to help you decide if Response Insurance is best for you. By choosing a company with a better-than-average complaint history, or at least avoiding companies with consistent, worse-than-average complaint records, you reduce the likelihood you will have a negative experience, when you need your auto insurance company.


Response Insurance Review

Response Insurance is owned by the Kemper / Unitrin group of insurance companies, as a part of the Kemper Direct operations, and sells auto insurance direct to the public, through its website and call centers. Although the Response Insurance website says home and/or renters insurance is available in some states, none of the Response subsidiaries seem to have any active home insurance policies, as of 2012.

This Response Insurance review is divided into three sections, consisting of: 1. its AM Best Financial Strength Ratings, 2. its auto insurance customer complaint ratings, and 3. information about competing auto insurance companies, and how their complaint records compare to the Response companies.

Most auto & home insurance companies have several subsidiary companies. The use of more than one auto or home insurance subsidiary company is usually to offer different pricing to specific risk profiles (for example, drivers with a clean driving record vs. drivers with tickets and accidents), operate in a certain US state or group of states, or offer different lines of insurance, such as mobile home or motorcycle insurance. Different subsidiaries can also be used for different sales distribution methods, such as selling direct from the company, or through independent insurance agents. Each subsidiary has its own rates, so the price you are quoted will vary, if you are eligible and receive quotes from multiple Response or Kemper subsidiaries.

1. AM Best Financial Strength Ratings for Response Insurance.

The auto insurance subsidiaries of the Response Insurance companies included in this review have a A- (Excellent) AM Best Financial Strength Rating with a stable outlook (no ratings upgrade or downgrade is expected in the near future) reaffirmed on 07/02/2014. A- is the fourth highest rating for AM Best. I become concerned with any automobile or homeowners insurance company or subsidiary with less than an A- rating for financial strength from AM Best.

2. Response Auto Insurance Complaint Statistics & Ratings.

Common reasons for people to file auto insurance complaints with a state insurance department against insurance companies, are for delays in a claim payment, unsatisfactory payment of a claim, and denial of a claim. The complaint statistics used in this Response Insurance review are the number of upheld complaints filed against the Response companies with a state’s insurance regulatory authority, adjusted for the company’s market share, as determined by the National Association of Insurance Commissioners. Annual NAIC auto insurance complaint ratios lower than “1” have less complaints than the industry average, and complaint ratios over “1” have more complaints than the industry average. The lower the complaint ratio, the less complaints against the company. Ideally, you want to choose an insurance company with complaint ratios much less than 1.00 each year, over at least the most recent three years.

So you don’t have to worry about comparing complaint ratio numbers, I devised a rating system to help you identify a good or poor complaint record.

Here’s how I establish my auto insurance complaint ratings:

B = Better than average. Insurance companies with complaint ratios less than 75% of the average insurance company.

C = Average. Insurance companies with complaint ratios from 75% to 125% of the average insurance company.

W = Worse than average. Insurance companies with complaint ratios more than 125% of the average insurance company.

Response Insurance has six subsidiary companies insuring private passenger vehicles in the states where the company sells auto insurance.

Response Indemnity Company of California (CA only) had only $67 in 2012 US auto insurance premiums, and does not appear to be selling auto insurance, so it’s not included in this auto insurance complaints analysis.

Response Insurance Company Auto Insurance Complaint Statistics & Ratings

B = Better than Average C = Average W = Worse than Average

2013 Auto Insurance Complaint Ratio = W (5.61)

2013 US auto insurance premium = $7,739,895

2012 Auto Insurance Complaint Ratio = W (6.22)

2012 US auto insurance premium = $14,523,149

2011 Auto Insurance Complaint Ratio = W (3.32)

2011 US auto insurance premium = $23,271,794

2010 Auto Insurance Complaint Ratio = W (1.36)

2010 US auto insurance premium = $24,890,316

2009 Auto Insurance Complaint Ratio = W (3.09)

Response Insurance Company is licensed in the following states, but may not be selling auto insurance in all of them: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, & Wyoming.

The Response Insurance Company subsidiary has a worse-than-average auto insurance complaint history over the last five years. Its number of auto insurance complaints, in its worst year during this five-year period (2012), is 622% of the industry average. The auto insurance market share for Response Insurance Company has decreased over the last four years, which may be an indication its auto insurance rates are not competitive. Response Insurance Company may no longer sell new policies and may be cancelling current customers or offering renewal with a different Kemper subsidiary.

Response Worldwide Insurance Company Auto Insurance Complaint Statistics & Ratings

B = Better than Average C = Average W = Worse than Average

2013 Auto Insurance Complaint Ratio = B (0) (No complaints)

2013 US auto insurance premium = $3,000,554

2012 Auto Insurance Complaint Ratio = W (1.38)

2012 US auto insurance premium = $13,069,163

2011 Auto Insurance Complaint Ratio = B (.40)

2011 US auto insurance premium = $21,379,707

2010 Auto Insurance Complaint Ratio = W (2.01)

2010 US auto insurance premium = $25,202,672

2009 Auto Insurance Complaint Ratio = C (1.07)

Response Worldwide Insurance Company is licensed in the following states, but may not be selling auto insurance in all of them: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Utah, Vermont, Virginia, Washington, West Virginia, & Wisconsin.

The Response Worldwide Insurance Company subsidiary has a higher than average number of auto insurance complaints in three of the last five years. Its number of auto insurance complaints, in its worst year during this five-year period, is 201% of the industry average. The auto insurance market share for Response Worldwide Insurance Company has decreased over the last four years, which may be an indication its auto insurance rates are not competitive. Response Worldwide Insurance Company may no longer sell new policies and may be cancelling current customers or offering renewal with a different Kemper subsidiary.

Warner Insurance Company Auto Insurance Complaint Statistics & Ratings

B = Better than Average C = Average W = Worse than Average

2013 Auto Insurance Complaint Ratio = W (9.38)

2013 US auto insurance premium = $4,631,275

2012 Auto Insurance Complaint Ratio = W (1.70)

2012 US auto insurance premium = $10,620,651

2011 Auto Insurance Complaint Ratio = B (.74)

2011 US auto insurance premium = $23,265,006

2010 Auto Insurance Complaint Ratio = W (4.40)

2010 US auto insurance premium =$23,060,693

2009 Auto Insurance Complaint Ratio = C (1.25)

Warner Insurance Company is licensed in the following states, but may not be selling auto insurance in all of them: Alabama, Arizona, Arkansas, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Montana, Nebraska, Nevada, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Washington, West Virginia, Wisconsin, & Wyoming.

The Warner Insurance Company subsidiary has a higher than average number of auto insurance complaints in four of the last five years. Its number of auto insurance complaints, in its worst year during this period, is 440% of the industry average. The auto insurance market share for Warner Insurance Company has decreased over the last four years, which may be an indication its auto insurance rates are not competitive. Warner Insurance Company may no longer sell new policies and may be cancelling current customers or offering renewal with a different Kemper subsidiary.

Response Worldwide Direct Auto Insurance Company Auto Insurance Complaint Statistics & Ratings

B = Better than Average C = Average W = Worse than Average

2013 Auto Insurance Complaint Ratio = B (0) (No complaints)

2013 US auto insurance premium = $2,675,709

2012 Auto Insurance Complaint Ratio = C (.98)

2012 US auto insurance premium = $9,174,483

2011 Auto Insurance Complaint Ratio = B (.58)

2011 US auto insurance premium = $14,793,635

2010 Auto Insurance Complaint Ratio = B (0) (No complaints)

2010 US auto insurance premium = $22,414,384

2009 Auto Insurance Complaint Ratio = B (.49)

Response Worldwide Direct Auto Insurance Company is licensed in the following states, but may not be selling auto insurance in all of them: Alabama, Arizona, Connecticut, Florida, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maryland, New York, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Virginia, Wisconsin, & Wyoming.

The Response Worldwide Direct Auto Insurance Company subsidiary has a lower than average number of auto insurance complaints each year since 2009, but was close to the industry average in 2012, when its number of auto insurance complaints was 98% of the industry average. The auto insurance market share for Response Worldwide Direct Auto Insurance Company has decreased over the last four years, which may be an indication its auto insurance rates are not competitive. Response Worldwide Direct Auto Insurance Company may no longer sell new policies and may be cancelling current customers or offering renewal with a different Kemper subsidiary.

Kemper Financial Indemnity Company (Formerly National Merit Insurance Company) Auto Insurance Complaint Statistics & Ratings

B = Better than Average C = Average W = Worse than Average

2013 Auto Insurance Complaint Ratio = B (0) (No complaints)

2013 US auto insurance premium = $1,139,115

2012 Auto Insurance Complaint Ratio = B (0) (No complaints)

2012 US auto insurance premium = $7,684,339

2011 Auto Insurance Complaint Ratio = C (.97)

2011 US auto insurance premium = $8,861,477

2010 Auto Insurance Complaint Ratio = C (.81)

2010 US auto insurance premium = $10,450,738

2009 Auto Insurance Complaint Ratio = B (.65)

Kemper Financial Indemnity Company, previously named National Merit Insurance Company, is licensed in the following states, but may not be selling auto insurance in all of them: Connecticut, Idaho, New York, Oregon, Pennsylvania, and Washington.

The Kemper Financial Indemnity Company subsidiary has a lower than average number of auto insurance complaints each year, over the last five years. Its number of auto insurance complaints, in its worst year during this five-year period (2011), was 97% of the industry average. The auto insurance market share for Kemper Financial Indemnity Company has decreased over the last four years, which may be an indication its auto insurance rates are not competitive. Kemper Financial Indemnity Company may no longer sell new policies and may be cancelling current customers or offering renewal with a different Kemper subsidiary.

3. Response Auto Insurance Complaint Ratings Compared to Major Competitors.

Allstate Insurance

Auto insurance complaint record: Most of the Allstate subsidiaries have a history of better annual auto insurance complaint ratios than the Response companies.

You can check Allstate’s complaint statistics in my Allstate Insurance complaints & ratings review here.

State Farm Insurance

Auto insurance complaint record: The State Farm subsidiaries have a history of better annual auto insurance complaint ratios than the Response companies.

You can check the State Farm complaint statistics in my State Farm Insurance complaints & ratings review here.

Farmers Insurance

Auto insurance complaint record: The majority of the many Farmers Insurance Group companies have a history of about the same of better annual auto insurance complaint ratios than most of the Response companies.

You can check the Farmers complaint statistics in my Farmers Insurance complaints & ratings review here.

GEICO Insurance

Auto insurance complaint record: The GEICO companies have a history of better annual auto insurance complaint ratios than most of the Response companies.

You can check the GEICO complaint statistics in my GEICO Insurance complaints & ratings review here.

Progressive Insurance

Auto insurance complaint record: Most of the many Progressive Insurance Group companies have a history of better auto insurance complaint ratios than the Response companies. These Progressive subsidiaries have about the same or worse auto insurance complaint ratios than the Response companies: Progressive Casualty Insurance Company, Progressive Classic Insurance Company, Progressive Express Insurance Company, Progressive Southeastern Insurance Company, & United Financial Casualty Company.

You can check the Progressive complaint statistics in my Progressive Insurance complaints & ratings review here.

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Thanks for reading this review about Response auto insurance complaints. You can find other reviews of leading auto, home, & life insurance companies on my website & blog. What do you think of Response auto insurance? Did you find this review useful? Comment on my facebook page. If you have questions, you can reach me at help@smartshopyourcarinsurance.com. Follow me on Twitter for important insurance consumer news & new blog entries at CarInsWatch.