NPS® for car and homeowners insurance companies

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Written by
Customer Insights and Analytics Consultant
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Reviewed by
Farmers CSR for 4 Years
UPDATED: 2022-09-01T05:09:06.926Z
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Insurance companies' NPS

The Net Promoter Score® has long been viewed in the insurance industry as a reliable measure of policyholder loyalty. The appeal is the simple nature of the question asking consumers their likelihood of recommending a specific brand. The method for administering the NPS is left up to the individual companies.

Since companies self-administer, and in essence survey themselves, the application of NPS methodology can be somewhat opaque and inconsistent across the insurance industry.

Clearsurance has collected over 125,000 insurance carrier reviews since 2017 by asking the NPS question in the same exact way at truly random touchpoints in the insurance customer journey. Each policyholder leaving a review is asked the NPS question of how likely they are to recommend their insurer. There is no selection process. Simply said everyone is asked and required to publish a review and rating. Our consistent method allows for a more reliable and unbiased representation of consumer sentiment.

Below, you'll find comparable Net Promoter Scores for auto and homeowners insurance companies. Additionally, we are providing insights into the key drivers of the scores based on ratings and the 100,000+ comments, where we have mined the unstructured text data that policyholders have provided.

What is a Net Promoter Score and what's a good NPS Score?

Respondents to the Net Promoter Score questioned are grouped into one of three categories, depending on their response.

  • Promoters (score 9-10): These are considered loyal enthusiasts — customers who may encourage others to join the company
  • Passives (score 7-8): These customers are considered satisfied with the company but aren't enthusiastic and may be susceptible to leaving for a competitor
  • Detractors (score 0-6): These are considered unhappy customers who may spread negative word-of-mouth about the company

The Net Promoter Score of a company can range from 100 (all respondents are promoters) all the way to -100 (all respondents are detractors). Based on global NPS standards, scores better than 0 are considered good, scores higher than 50 are considered excellent and scores above 70 are considered world-class.

What's considered a good NPS does vary to some degree by industry. The average NPS in the auto insurance industry is 44 while the average in the homeowners insurance industry is 42, according to NICE Satmetrix.

Insurance Net Promoter Scores

Only car and home insurers with at least 150 customer reviews were included in our ranking list, resulting in a ranking of 35 car and 18 homeowners insurance companies.

NPS for car insurance companies

Car insurance company NPS® # of reviews NPS rating
USAA 79% 4,198 World class
NJM Insurance Group 73% 263 World class
Farm Bureau Insurance of Tennessee 69% 224 Excellent
Amica Mutual Insurance Company 61% 435 Excellent
Erie Insurance Group 61% 1,079 Excellent
Kentucky Farm Bureau 61% 172 Excellent
Shelter Mutual Insurance Company 55% 264 Excellent
AAA 50% 2,203 Excellent
Auto-Owners Insurance Group 50% 365 Excellent
The Hartford 49% 565 Good
Alfa Insurance 47% 195 Good
Plymouth Rock Assurance 45% 175 Good
Geico Insurance Company 44% 15,686 Good
Farm Bureau Property & Casualty Insurance Company (FBPCIC) 43% 274 Good
Commerce Insurance (MAPFRE) 43% 187 Good
State Farm Insurance 42% 10,846 Good
Country Financial 41% 217 Good
American Family Insurance 41% 1,144 Good
Safeco Insurance 40% 673 Good
Travelers Companies, Inc. 39% 978 Good
Progressive Corporation 38% 10,262 Good
CSAA Insurance Group, a AAA Insurer 38% 319 Good
Nationwide 37% 1,971 Good
MetLife, Inc. 35% 514 Good
Allstate Insurance 34% 7,020 Good
Esurance, Inc. 33% 1,209 Good
Liberty Mutual Insurance 33% 2,028 Good
Farmers Insurance Group 32% 1,586 Good
21st Century Insurance 29% 329 Good
Mercury Insurance Group 29% 548 Good
Safe Auto Insurance Company 25% 377 Good
Alliance United Insurance Company 20% 153 Good
National General Insurance Company (Integon) 20% 279 Good
Direct Auto & Life Insurance Company (Direct General) 16% 226 Good
The General Auto Insurance 9% 711 Good

NPS for homeowners insurance companies

Homeowners insurance company NPS® # of reviews NPS rating
USAA 77% 1,296 World class
Country Financial 58% 175 Excellent
Erie Insurance Group 58% 543 Excellent
Amica Mutual Insurance Company 54% 268 Excellent
AAA 45% 569 Good
The Hartford 44% 271 Good
Geico Insurance Company 41% 1,233 Good
State Farm Insurance 40% 4,482 Good
Liberty Mutual Insurance 38% 1,019 Good
Progressive Corporation 38% 936 Good
Safeco Insurance 37% 293 Good
Farmers Insurance Group 35% 1,064 Good
MetLife, Inc. 33% 336 Good
Travelers Companies, Inc. 32% 564 Good
Allstate Insurance 32% 3,397 Good
Farm Bureau Property & Casualty Insurance Company (FBPCIC) 29% 257 Good
Nationwide 29% 782 Good
American Family Insurance 28% 757 Good

Several factors can influence a company’s score. While it’s not the focus of this report to determine the driving factor for each company, we did look at the results in aggregate in order to uncover a few insights.

1. Having a claim itself is not a strong indicator; it’s how the claim service is rated that matters

Comparing NPS for those who experienced a claim vs. those who did not resulted in only a slight difference. Contrary to what one might think, those who had a claim actually averaged a higher NPS. This is likely due to the fact most individuals have a positive claim experience. In fact, the more glaring impact can be seen when comparing NPS by how individuals rated their claims experience. Analyzing the over 26,000 ratings for claims experience showed a significant trend. As the rating for claim service improves, so does the NPS.

  Auto NPS® Home NPS®
Had a claim 68% 69%
Did not have a claim 63% 64%

NPS graph

2. Policies in the duration of 1-5 years (auto) and 6-10 years (home) are the most at risk

Clearsurance was able to access nearly 50,000 reviews where a policyholder provided detailed information about the length of time they have owned a policy with their carrier. According to the data, the risk of a policy lapsing will vary based on years of policy duration.

  Auto NPS® Home NPS®
<1 year 31.3% 36.0%
1-5 years 27.9% 30.9%
6-10 years 39.2% 28.9%
10+ 51.8% 42.1%

3. Multiple factors influence a score; however poor claim service has the biggest impact on NPS

Net Promoter Score is calculated by segmenting individuals into either promoters or detractors. In looking at the unstructured text data, comments provided by these two segments provides an understanding of how their experiences differ, and what might be driving feedback. As detailed in the table below, promoters are significantly more likely to use positive words to describe their experience (i.e. speed, helpful and ease). It’s important to note that the frequency of mentions for rate increase saw the greatest deviation; however, it’s the reviewers referencing a “poor” claims experience that had the most significant and predictable impact relative to the NPS...which gets us back to our first insight above.

Auto insurance comments from unstructured text data found in customer reviews

  Detractors Promoters
Rate Increase 17% 3%
Helpful 7% 18%
Miscommunication/expectation 6% 1%
Speed 6% 18%
Ease 6% 16%
Claim Dispute 5% 0%
Slow Claim 2% 0%

Homeowners insurance comments from unstructured text data found in customer reviews

  Detractors Promoters
Rate Increase 14% 2%
Claim Dispute 8% 0%
Helpful 7% 17%
Miscommunication/expectation 6% 1%
Speed 6% 19%
Ease 5% 14%
Slow Claim 2% 0%

Interested in engaging more with Clearsurance? Learn more about our offerings here.

Net Promoter, Net Promoter System, Net Promoter Score, NPS, and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld, and Satmetrix Systems, Inc.

The content on this site is offered only as a public service to the web community and does not constitute solicitation or provision of legal advice. This site should not be used as a substitute for obtaining legal advice from an insurance company or an attorney licensed or authorized to practice in your jurisdiction. You should always consult a suitably qualified attorney regarding any specific legal problem or matter. The comments and opinions expressed on this site are of the individual author and may not reflect the opinions of the insurance company or any individual attorney.

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