Is Otto Insurance Legit? Reviews of This Auto Insurance Company

Otto is an auto insurance company that promises to help drivers find affordable coverage. But is Otto insurance legit? In this comprehensive review, we’ll take an in-depth look at Otto, including its pros and cons, coverage options, discounts, customer reviews, and more.

Overview of Otto Insurance

Otto operates as an online insurance marketplace, not as a direct insurance provider. This means Otto doesn’t underwrite any policies itself. Instead, it connects drivers to quotes from partner insurance companies.

How Otto Works

• You enter your basic info like age, vehicle type, and address on Otto’s website
• Otto runs your details through its database to find the best match
• You receive a quote from one of Otto’s insurance partners
• If you like the quote, you can purchase the policy directly from that insurance company

Otto claims to partner with over 100 top insurance carriers, including major companies like Nationwide, Progressive, and Farmers. However, Otto itself does not have financial strength ratings or customer satisfaction scores from third parties like AM Best or J.D. Power.

Pros of Otto

• Quickly compare quotes from multiple insurers
• Partners with reputable national insurance brands
• Simple online quote process

Cons of Otto

• All policies are underwritten by third parties, not Otto
• Poor customer reviews
• You may receive unsolicited calls/emails after getting a quote
• Limited plan customization and discounts

Next, let’s take a closer look at whether Otto is a legitimate and reliable company.

Is Otto Insurance Legit?

So, is Otto a scam or a legitimate way to find affordable auto insurance? Otto does appear to be a real company, but there are some concerns about its business practices.

No Direct Underwriting

The biggest thing to understand is that Otto itself does not underwrite any insurance policies. This means Otto doesn’t pay out claims or handle policy management – that’s all done by the carrier you end up purchasing from.

Otto simply provides quotes and refers customers to partner insurers. So while Otto isn’t necessarily a “scam,” you won’t get an Otto-branded insurance policy.

Poor Customer Reviews

Otto insurance currently has very few online customer reviews. However, most of the reviews that do exist are overwhelmingly negative:

• Trustpilot: 2.1 out of 5 stars based on 9 reviews
• Better Business Bureau: Not rated or accredited by the BBB

Many reviews accuse Otto of being a “lead generation” site that sells your information to other insurance companies. Some customers said they entered their details but never received a quote from Otto. Others complained about getting bombarded with calls from insurance agents after submitting their info.

This suggests Otto’s business model is centered around collecting and selling consumer data. Make sure you read the fine print before entering your information to avoid unwanted solicitation.

No Financial Strength Data

Reputable insurance providers are rated for financial strength by agencies like A.M. Best. These ratings assess an insurer’s ability to pay out claims. Otto doesn’t have any financial strength ratings since it doesn’t underwrite policies.

The partner carrier you end up purchasing from will have its own A.M. Best rating, but those details aren’t transparent upfront when you get an Otto quote. This makes it hard to evaluate the financial stability of Otto’s insurance partners.

Otto Auto Insurance Coverage Options

Since Otto is not an insurance company, it does not directly offer any types of auto insurance coverage. The policies available through Otto will depend entirely on which insurance company you are matched with.

Otto claims to partner with national brands like Allstate, Liberty Mutual, Travelers, and others. These major insurers will likely offer standard coverage types such as:

• Bodily injury/property damage liability
• Collision
• Comprehensive
• Uninsured/underinsured motorist
• Medical payments
• Personal injury protection

You may also be able to add extras like roadside assistance, rental reimbursement, and rideshare coverage based on the insurer.

But because Otto only provides you with one quote, you won’t be able to easily compare coverage offerings side-by-side. Make sure to carefully review the policy documents from the matched insurer before purchasing.

Discounts from Otto Insurance

The discounts you qualify for will depend entirely on which insurance company you get matched with through Otto’s quoting process. Otto itself does not offer any discounts.

Some common auto insurance discounts to ask about include:

• Good driver discount
• Low mileage discount
• Multi-policy discount
• Anti-theft features discount
• Defensive driver discount
• Good student discount
• Pay-in-full discount
• Usage-based insurance program

However, because you can only get one quote at a time from Otto, it will be difficult to compare potential discounts across multiple carriers. Make sure to inquire about any ways to save with the matched insurer.

Otto Insurance Reviews: What Customers Are Saying

Independent customer reviews for Otto insurance are limited, but most of the existing feedback is negative. Here’s an overview of what customers have experienced using Otto:

• Trustpilot: Otto has a very poor 2.1 out of 5 rating based on only 9 Trustpilot reviews. 80% of reviewers gave Otto just 1 star.

• Better Business Bureau: Otto does not have a BBB profile and is not an accredited business.

• Google Reviews: Otto does not have a Google Business Profile or any Google reviews.

• Reddit: Several Reddit users warn against using Otto insurance and describe it as a “lead generation service.”

The most common complaints include:

• Never getting a quote after entering personal information
• Receiving constant calls/emails from insurance agents
• Misleading advertising and questionable business practices
• Poor customer service

While Otto insurance is not necessarily an outright scam, many customers seem to have bad experiences using this service to find affordable coverage. Make sure to read reviews and compare quotes from multiple insurers.

How Much Does Otto Insurance Cost?

Otto insurance does not publish any sample rate estimates on its website. The cost of coverage will depend entirely on which insurance carrier you get matched with, as well as personal factors like:

• Your age, gender, marital status
• Your driving and credit history
• The type of vehicle you drive
• Your location and mileage
• The policy limits and deductibles you select

Because Otto only provides one quote from a matched insurer, it’s impossible to compare pricing across multiple companies. Make sure to shop around and get quotes from several providers to find the best rate for your situation.

How to Get a Quote From Otto Insurance

Getting a free auto insurance quote from Otto takes just a few minutes online:

1. Visit the Otto website and enter your zip code
2. Provide details about yourself and your vehicle
3. Answer questions about your driving history
4. Receive a quote from one of Otto’s partner insurers
5. Review the quote and purchase it directly from the insurance company

However, be aware that by entering your information you may consent to being contacted by insurance agents. Consider using a different quoting service if you want to easily compare multiple carriers side-by-side.

Is Otto Insurance Right for You?

Otto insurance could potentially help you find an affordable policy, but there are some downsides to be aware of:

Pros

• Quick and easy quoting process
• Partners with major insurance brands
• No obligation to purchase a policy

Cons

• Overwhelmingly negative customer reviews
• May receive unwanted calls/emails
• No ability to compare multiple quote options
• All policies underwritten by third parties

Ultimately, while Otto itself is a legitimate business, you may have a better experience using a quote comparison site like Policygenius or The Zebra to shop multiple insurers at once. But feel free to get a free Otto quote if you want to see their rates.

Top Alternatives to Otto Insurance

Rather than relying solely on Otto insurance, here are some other recommended ways to save money on car insurance:

• Geico: Geico is consistently rated as one of the cheapest car insurance companies nationwide. It offers a user-friendly online quoting and claims process.

• Progressive: Progressive offers affordable rates and usage-based insurance options that reward safe driving habits. You can get quotes online, over the phone, or via mobile app.

• State Farm: State Farm has a strong reputation for customer service and works with local agents to find you the right policy. It offers standard coverage plus rideshare insurance.

• USAA: For military members and their families, USAA provides some of the lowest rates and best benefits, though eligibility is limited.

• The Zebra: This insurance comparison site lets you anonymously compare quotes from over 200 carriers at once. There’s no obligation to purchase.

• Policygenius: Policygenius is a highly-rated insurance marketplace that makes it easy to compare personalized quotes. You can also consult with advisors.

No matter which company you choose, make sure to shop around and get quotes from multiple providers before making a decision. Comparing rates can save you hundreds per year on car insurance.

The Bottom Line: Is Otto Legit for Car Insurance?

• No direct underwriting – Otto itself does not issue policies or pay claims, it just matches you with quotes
• Poor reviews – Most existing Otto insurance reviews and ratings are very negative
• Limited discounts – Discounts depend on the matched insurer only
• One quote – Otto only provides a single quote, making comparison difficult
• Unsolicited contact – Many customers complain about unwanted calls/emails after submitting info

While Otto insurance is a real company, you may have a better experience shopping quotes through an insurance comparison marketplace. Make sure to read reviews and compare multiple carriers.

Overall, Otto insurance may not be an outright scam, but it has some questionable business practices and very poor customer feedback. You can likely find more transparent and affordable auto insurance through highly-rated providers like Geico, State Farm, and Progressive.