Kemper Specialty Insurance Review: Auto Insurance Customer Complaint Statistics & AM Best Ratings

This Kemper Specialty Insurance review will evaluate, for the most recent six year period where reliable statistics are available (2009, 2010, 2011, 2012, 2013, & 2014), the auto insurance complaint ratings for the subsidiary companies of Kemper Specialty, to determine whether each subsidiary, such as Alpha Property & Casualty Insurance Company or Financial Indemnity 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 Kemper Specialty operating company, as a possible indication of competitive pricing. The Kemper Specialty companies sell nonstandard auto insurance for drivers considered higher risk. This review will compare the auto insurance complaint records for the Kemper Specialty subsidiary companies, with the companies or subsidiaries of major competitors selling nonstandard auto insurance, like Allstate Indemnity, Progressive, GEICO Casualty, The General, Infinity, National General (Formerly GMAC) & Mid-Century Insurance Company (Farmers).

Can positive or negative customer reviews help you choose a better auto insurance company? Do customer reviews at least help you avoid insurance companies with inferior customer service? 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.

The most 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 Kemper Specialty auto insurance review, are the number of upheld complaints filed against the Kemper Specialty companies, with a state’s insurance regulatory authority, adjusted for the company’s market share, as determined by the National Association of Insurance Commissioners. This review provides valuable information to help you decide if Kemper Specialty 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.


Kemper Specialty Insurance Review

Kemper Specialty is a part of the Kemper Corporation, and its the Kemper / Unitrin group of insurance companies selling nonstandard auto insurance through independent insurance agents, in many US States. Other Kemper groups, such as Kemper Direct (including Kemper Select & the Response insurance companies) & Kemper Preferred, are reviewed separately. The Kemper Specialty companies are designed to insure drivers most auto insurance companies consider a higher risk, because of their driving record, license suspensions, no prior insurance, less than three years of driving experience in the USA, or other reasons.

The Kemper Specialty companies insure drivers many other car insurance companies won’t insure. If you qualify for standard auto insurance, don’t waste your time getting auto insurance quotes from nonstandard auto insurance companies designed specifically for higher risk drivers, like Kemper Specialty, Titan, Victoria, Infinity or The General. Some large insurance groups, like Progressive & GEICO, sell auto insurance at preferred, standard, and nonstandard rates, and have competitive rates for all types of drivers. However, many insurance companies, like State Farm, have little interest offering higher risk auto insurance coverage. Some major auto insurance companies do not have a nonstandard auto insurance subsidiary, like Amica.

In some states, if you are under age 25, and have something as minor as one moving violation on your driving record, some auto insurance companies may not insure you. If you have an at-fault accident or two moving violations, more auto insurance companies are likely to decline to insure you. If you, or a driver in your household, has a major violation, like reckless driving, excessive speeding, DUI, or multiple at-fault accidents or a lapse in auto insurance coverage, you may find only nonstandard auto insurance companies will insure you.

You don’t need to be a terrible or inexperienced driver to have a problem qualifying for standard auto insurance. A combination of factors (subject to state law), like being single, under age 30, having only one older car, poor credit, a recent claim, a traffic ticket, or even a not-at-fault accident, might mean nonstandard auto insurance companies are your only option.

When people have trouble qualifying for standard auto insurance, it can be hard for them to find the auto insurance companies willing to insure them, and even more important for them to shop to get the least expensive rates. At the very least, this review will show you other nonstandard auto insurance companies, to help you shop to find the best price.

You can go to the Kemper Specialty website to locate independent insurance agents in your area, appointed to sell the nonstandard auto insurance of one or more of the Kemper Specialty companies. These agents most likely represent other nonstandard auto insurance companies, to help you find the best rates. However, don’t forget to check with major companies, like Progressive, GEICO, Allstate, Farmers & American Family, etc. by using the ads at the top & bottom of this review.

Buyers of nonstandard auto insurance are usually most concerned with getting the best price or the lowest down payment, but the complaint information in this review should be considered in a customer’s buying decision. However, due to the nature of insuring higher risk drivers, most nonstandard auto insurance companies or subsidiaries have a higher number of complaints than standard or preferred insurance companies or subsidiaries, and often much higher auto insurance complaint ratios.

This Kemper Specialty auto insurance review is divided into four sections, consisting of: 1. its AM Best Financial Strength Ratings, 2. its JD Power auto insurance customer satisfaction ratings compared to other companies, 3. its auto insurance customer complaint record, and 4. information about competing auto insurance companies, and how their complaint records compare to the Kemper Specialty companies.

Most auto insurance companies have several subsidiary companies. The use of more than one auto 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 motor home, RV, ATV, 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 Kemper subsidiaries.

1. AM Best Financial Strength Ratings for Kemper Specialty Auto Insurance

The auto insurance subsidiaries of Kemper Specialty included in this review (Alpha Property & Casualty Insurance Company, Charter Indemnity Company, Unitrin County Mutual Insurance Company, & Financial Indemnity Company) 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 7/15/2015. 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. JD Power Auto Insurance Customer Satisfaction Study Ratings for Kemper

Kemper has not been included in the annual JD Power Auto Insurance Customer Satisfaction study since 2013, when it was rated in the California region, and received the lowest rating of two power circles for overall auto insurance customer satisfaction in California.

2013: Kemper scored 35 points (on a 1,000 point scale) or 3.5% below the 2013 California region average, at 742 out of 1,000 points.

These companies scored 3.8% or more higher than in the 2013 California Region study: USAA, Wawanesa, State Farm, The Hartford, Auto Club of Southern California, GEICO, Ameriprise, Safeco, Progressive, CSAA/AAA NCNU, Allstate, and Liberty Mutual.

These companies scored .5% or more lower than in the 2013 California Region study: Farmers and Infinity P&C.

2. Kemper Specialty Auto Insurance Complaint Statistics & Ratings

Kemper Specialty has four subsidiary companies insuring private passenger vehicles in the states where the companies sell auto insurance.

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.

Alpha Property & Casualty Insurance Company Auto Insurance Complaint Statistics & Ratings

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

2014 Auto Insurance Complaint Ratio = W (2.94)

2014 US auto insurance premium = $76,779,267

2013 Auto Insurance Complaint Ratio = W (2.82)

2013 US auto insurance premium = $80,947,417

2012 Auto Insurance Complaint Ratio = W (1.93)

2012 US auto insurance premium = $88,739,708

2011 Auto Insurance Complaint Ratio = W (2.20)

2011 US auto insurance premium = $92,694,652

2010 Auto Insurance Complaint Ratio = W (1.76)

2010 US auto insurance premium = $86,404,974

2009 Auto Insurance Complaint Ratio = W (3.68)

Alpha Property & Casualty Insurance Company is licensed to operate, but may not be selling auto insurance, in all of the following states: Arizona, Colorado, Florida, Georgia, Iowa, Idaho, Illinois, Indiana, Missouri, Montana, North Dakota, Nebraska, Nevada, Ohio, Oregon, South Dakota, Utah, Virginia, Washington, & Wisconsin.

The Alpha Property & Casualty Insurance Company subsidiary has a worse-than-average auto insurance complaint history over the last six years. Its number of auto insurance complaints, in its worst year during this six-year period, is 368% of the industry average. The auto insurance market share for Alpha Property & Casualty Insurance Company has decreased each year since 2011, which may be an indication Alpha Property & Casualty Insurance Company no longer has competitive pricing for its auto insurance, in at least some of the states where it operates.

Charter Indemnity Company Auto Insurance Complaint Statistics & Ratings

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

2014 Auto Insurance Complaint Ratio = C (1.21)

2014 US auto insurance premium = $17,732,514

2013 Auto Insurance Complaint Ratio = B (.50)

2013 US auto insurance premium = $21,514,879

2012 Auto Insurance Complaint Ratio = B (.62)

2012 US auto insurance premium = $29,016,924

2011 Auto Insurance Complaint Ratio = B (.32)

2011 US auto insurance premium = $26,365,809

2010 Auto Insurance Complaint Ratio = B (.45)

2010 US auto insurance premium = $18,729,713

2009 Auto Insurance Complaint Ratio = B (0) (No complaints)

Charter Indemnity Company is licensed to operate, but may not be selling auto insurance, in all of the following states: Georgia, Illinois, Missouri, Oklahoma, Texas, & Washington.

The Charter Indemnity Company subsidiary has a better-than-average auto insurance complaint record from 2009 to 2013, but its number of auto insurance complaints in 2014 was 21% more than the industry average. The auto insurance market share for Charter Indemnity Company has decreased each year since 2012, which may indicate Charter Indemnity Company no longer has competitive pricing for its auto insurance, in at least some of the states where it operates.

Financial Indemnity Company Auto Insurance Complaint Statistics & Ratings

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

2014 Auto Insurance Complaint Ratio = W (1.37)

2014 US auto insurance premium = $149,399,102

2013 Auto Insurance Complaint Ratio = W (2.02)

2013 US auto insurance premium = $166,350,825

2012 Auto Insurance Complaint Ratio = W (1.98)

2012 US auto insurance premium = $190,998,791

2011 Auto Insurance Complaint Ratio = W (1.64)

2011 US auto insurance premium = $213,110,674

2010 Auto Insurance Complaint Ratio = W (2.08)

2010 US auto insurance premium = $239,831,028

2009 Auto Insurance Complaint Ratio = W (2.88)

Financial Indemnity Company is licensed to operate, but may not be selling auto insurance, in all of the following states: Arizona, California, Colorado, Delaware, Idaho, Illinois, Indiana, Louisiana, Missouri, Montana, New Mexico, Nevada, Ohio, Oregon, Texas, Utah, & Washington.

The Financial Indemnity Company subsidiary has a worse-than-average auto insurance complaint history over the last six years. Its number of auto insurance complaints, in its worst year during this five-year period, is 288% of the industry average. The auto insurance market share for Financial Indemnity Company has decreased each year since 2010, which may be an indication Financial Indemnity Company does not have competitive pricing for its auto insurance, in at least some of the states where it operates.

Unitrin County Mutual Insurance Company Auto Insurance Complaint Statistics & Ratings

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

2014 Auto Insurance Complaint Ratio = C (1.19)

2014 US auto insurance premium = $72,363,323

2013 Auto Insurance Complaint Ratio = W (1.30)

2013 US auto insurance premium = $74,856,311

2012 Auto Insurance Complaint Ratio = B (.37)

2012 US auto insurance premium = $73,670,525

2011 Auto Insurance Complaint Ratio = B (.11)

2011 US auto insurance premium = $75,976,812

2010 Auto Insurance Complaint Ratio = B (.43)

2010 US auto insurance premium = $78,233,672

2009 Auto Insurance Complaint Ratio = C (1.22)

Unitrin County Mutual Insurance Company is licensed to operate in the state of Texas only.

The Unitrin County Mutual Insurance Company subsidiary had a better-than-average auto insurance complaint history from 2010 to 2012, but its number of auto insurance complaints in 2013 was 31% more than the industry average, and 19% more than the industry average in 2014. The auto insurance market share for Unitrin County Mutual Insurance Company has decreased since 2010, and in spite of the small increase from 2012 to 2013, the decrease may be an indication Unitrin County Mutual Insurance Company does not have competitive auto insurance rates in Texas.

4. Kemper Specialty Auto Insurance Complaint Record Compared to Major Competitors

Allstate Insurance

Auto insurance complaint record: The nonstandard Allstate insurance subsidiary in most states, Allstate Indemnity Company, & most of the other Allstate subsidiaries, have a history of better annual auto insurance complaint ratios than the largest Kemper Specialty companies.

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

The General Insurance

Auto insurance complaint record: The largest auto insurance subsidiary of The General has a history of worse annual auto insurance complaint ratios than the Kemper Specialty companies.

You can check The General complaint statistics in my Permanent General Assurance Corp. complaints & ratings review here.

National General (formerly GMAC) Insurance

Auto insurance complaint record: Most of the National General companies have a history of better annual auto insurance complaint ratios than the largest Kemper Specialty companies.

You can check The complaint statistics for the National General / Integon companies in my National General Insurance complaints & ratings review here.

Infinity Insurance

Auto insurance complaint record: The largest Infinity companies have a history of worse annual auto insurance complaint ratios than the Kemper Specialty companies.

You can check The complaint statistics for the Infinity companies in my Infinity Insurance complaints & ratings review here.

Titan / Victoria Insurance

Auto insurance complaint record: The largest Titan / Victoria companies have a history of worse annual auto insurance complaint ratios than the Kemper Specialty companies.

You can check The complaint statistics for the Titan / Victoria companies in my review here.

Farmers Insurance

Auto insurance complaint record: The nonstandard Farmers insurance subsidiary in most states, Mid-Century Insurance Company, as well as most of the other Farmers companies, have a history of better annual auto insurance complaint ratios than the largest Kemper Specialty companies.

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

GEICO Insurance

Auto insurance complaint record: The nonstandard GEICO insurance subsidiary in most states, GEICO Casualty Company, as well as the other GEICO companies, have a history of better annual auto insurance complaint ratios, compared to the largest Kemper Specialty companies.

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

Progressive Insurance

Auto insurance complaint record: Almost all of the many Progressive Insurance Group companies, except United Financial Casualty Company, have a history of better auto insurance complaint ratios than the largest Kemper Specialty companies.

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 Kemper Specialty insurance complaints. You can find other reviews of leading auto, home, & life insurance companies on my website & blog. What do you think of Kemper Specialty 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.