Insurance companies may not hold the same place in our hearts as our favorite vacation spot or restaurant, but nonetheless a majority of consumer reviews from the Clearsurance community are positive. For the most part, policyholders haven’t had many negative experiences with their insurer. Generally when an issue arises, an insurer is going to take the time to address the consumer complaint.
But we’ve also all heard the insurance horror stories. An accident that wasn’t covered or drastic premium hikes for what seems like no reason. So, what are the primary reasons car insurance companies receive negative reviews? We examined the thousands of car insurance reviews on Clearsurance to determine the five most common complaints among car insurance policyholders.
If you've ever had to file an insurance complaint, or you're not happy with your insurance agency, you can always look around to find a company who will take your grievances seriously. We have a free comparison tool that will let you compare quotes from different companies.
5. Negative representative attitude
One of the most common complaints among consumers on Clearsurance is the attitude of representatives of their company. This includes an agent with the company, a claim representative, service representative or an adjuster. It can be over the phone or in person at an office. Most commonly, consumers voiced their displeasure with rude representatives when they were already stressed from dealing with the claims process. A representative who is perceived as helpful and caring can have a significant positive effect on the consumers’ perception of their experience. Individuals who used words like helpful and caring in their review provided an average rating of 4.56 out of 5. Comparatively, individuals using words like rude and hateful rated their experience 2.95 on average.
4. Slow claim process
The claims process can be difficult to navigate. As you might expect, complaints about how claims were handled made our top five, with the speed of the claims process coming in at No. 4. Individuals complaining about the speed of the claim process often described the frustration of not having a quick resolution. For some, the dragged-out process resulted in extra work on their part or, in some cases, extra costs. More than half of the individuals complaining about slow claims reported they planned to shop for a new car insurance company.
3. Claim dispute
The third most frequently mentioned complaint also involves claims. While some individuals in this category talked about having their claim denied, many discussed disputing the payment amount. In many of these instances, the amount paid didn’t cover the full extent of the damages. Some of these complaints are likely due to the level or type of coverage a policyholder has and their lack of understanding what the insurance company is responsible for covering. Regardless, consumers describing a dispute with their claim gave their insurance company an average rating of just 2.77 for the overall experience.
Save Money by Comparing Insurance Quotes
Compare Free Insurance Quotes Instantly
Secured with SHA-256 Encryption
The second most frequently mentioned complaint can best be described as errors in communication. As an outcome of the miscommunication, the consumer’s understanding regarding what they can expect was not accurate and often resulted in disappointment. For example, miscommunication about what is covered by their policy, how a claim is handled or the cost of the policy are likely to result in the consumer feeling they were misinformed or even lied to.
This category also includes reviews when a policyholder needed to repeatedly explain themselves to their insurance representatives to obtain an acceptable resolution. Some examples include issues with billing, the need to make changes to contact information or plan features, as well as simply trying to get answers to general questions they may have. Consumers don’t want to have to repeatedly contact the insurance company to communicate changes or issues. The effect of miscommunication is demonstrated in the consumers’ average rating of their insurer’s customer service (3.17 out of 5).
1. Rate increase
By far the most frequently mentioned complaint discussed in reviews has to do with rate increases. For some consumers, the rate increase is best described as an irritation. Others, however, feel as though they’ve been tricked into purchasing a policy through the company only to receive unacceptable rate increases year after year.
Reasons for the rate increase are not always clear to the policyholder. When a rate increase occurs after a claim, consumers are typically understanding. However, others express frustration with receiving a premium hike despite a clean driving record and years of loyalty. The perceived unfairness of the rate increase has a direct impact on the consumers’ experience. On average, consumers complaining of a rate increase in their review were less likely to recommend their insurance company to friends with a score of only 3.02 out of 5.
Has your experience with insurance company been positive or negative? Help other consumers make smarter insurance decisions by writing a review of your experience. Any additional feedback given provides other consumers with better information regarding the insurers out there to choose from.
Don't forget about our comparison tool, which will help you to compare quotes from various companies.
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.