How to Choose a Car Insurance Company for Claims and Customer Service

Quality car insurance is defined by efficient claims processing, accessible support, and overall financial stability.

Good customer service can make a significant difference when you need help with your policy or have to file a claim. The best insurers make it relatively simple to get help, understand your coverage, and resolve problems when you need to use your policy.

Here are some of the main factors to consider when evaluating car insurance companies on customer service:

Strong customer satisfaction

Ratings from policyholders can provide insight into an insurer’s overall service, including interactions with representatives and how well the company meets customer expectations. J.D. Power’s main customer satisfaction study surveys real customers and measures seven core factors: level of trust, price for coverage, people, ease of doing business, coverage offerings, problem resolution, and digital channels.

Resources to consult: J.D. Power U.S. Auto Insurance Study¹

High claims satisfaction

Although claims will hopefully be few and far between, evaluating how an insurer handles them is particularly important. Look for insurers that perform well on communication, ease of filing, fairness of settlements, and time to resolve claims.

Resources to consult: J.D. Power U.S. Auto Claims Satisfaction Study², CRASH Network Report Card³

Low complaint rates

Policyholders can log complaints with state departments of insurance for various issues, including unfair settlements, denials, or delays. Reviewing complaint rates can give you a sense of which insurers you may be more likely to run into problems with.

Resources to consult: NAIC Complaint Index⁴

Accessible support

Consider how many ways you can reach the company and when help is available. Phone, online chat, email, and local agents can all make it easier to get assistance when you need it. For claims specifically, most insurance companies now have 24/7 claims intake. However, you should consider whether the insurer’s app allows you to file claims (or only make payments) and whether the company has agents easily reachable by phone, or even local offices if you prefer to meet with a representative in person.

Resources to consult: Insurer’s official website

Strong digital experience

Most of the time, your interactions with your insurance company will be day-to-day policy management and payments; you may also need to file and track a claim. A user-friendly website and mobile app can make all of these tasks more convenient.

Resources to consult: J.D. Power U.S. Digital Experience Study⁵, App Store and Google Play Store ratings

Available local agents

Drivers who prefer personalized assistance may benefit from insurers with extensive networks of local agents who can answer questions and provide help with their policies. If this type of service is important to you, it makes sense to prioritize companies with local agents.

Resources to consult: Insurer’s official website

Solid financial strength

This is an additional metric to look at in conjunction with overall claims satisfaction — an insurer’s financial stability can affect the customer experience as it reflects its ability to pay covered claims after a major loss. Low financial stability ratings are a red flag and indicate that you might have a harder time resolving claims.

Resources to consult: AM Best⁶

The resources listed here are among the most reliable sources for evaluating companies’ customer service records, but they are largely quantitative. For more context on the types of issues that existing policyholders have experienced, it can be helpful to also consult sources like the BBB, mobile app store reviews, and even Reddit.

However, keep in mind that dissatisfied customers may be more likely to leave reviews, so ratings and individual experiences from these sources should be viewed in context rather than taken as definitive measures of customer service.

Choosing between an independent agent, a captive agent, or an online platform changes your insurance experience.

Insurance companies use different models when it comes to how they sell insurance and their reliance on agents, whether captive or independent. The type of agent an insurer uses can affect how you interact with the company and the type of service you’re provided.

Some companies stand out when evaluating various customer service metrics across industry reports. These are by no means the only companies with good customer service, but they are a good starting point.

Service can also vary by region, as many of the top companies in J.D. Power’s Auto Insurance Study are smaller regional providers. Be sure to prioritize regional ratings where possible, as they will provide a better indication of which companies are more likely to provide a positive experience based on where you live.

You can read our full breakdowns of the best for customer service and the best for claims.

Finding a car insurance company with excellent service can mean you pay a higher premium in some cases, but it doesn’t necessarily. Smaller regional providers, in particular, — like Erie or Farm Bureau affiliates — tend to have competitive rates in the regions they serve while delivering top-notch service. In fact, all of the companies in our list above have average full coverage premiums below the national average.

There can sometimes be a trade-off, since insurers that invest heavily in local agents, 24/7 support, claims resources, and other customer-service features may have higher operating costs, which can sometimes be reflected in premiums. Insurers that serve high-net-worth individuals, like Chubb and AIG, tend to have very highly rated service and are more expensive on average.

Always get quotes from several providers and consider customer satisfaction, claims handling, and complaint data in addition to the premium you’re quoted.

Customer service is an important factor to consider in addition to price when comparing car insurance providers. Dealing with an insurance company is never fun, but an insurer with good customer service can make those interactions more seamless and less stressful. Various industry reports can be helpful to consult, including J.D. Power’s studies and the NAIC complaint index.

You should also consider whether you prefer to work with a captive or independent agent or manage your policy directly. Overall, the best company for you will be the one whose service, coverage, claims handling, and price best fit your needs.