Top 10 Worst Car Insurance Companies to Avoid in 2023

Choosing an auto insurance company is an important decision. The right insurer will be there when you need them after an accident. The wrong one could leave you stranded.

With thousands of options on the market, how can you identify the very worst providers to steer clear of?

We examined expert research, customer reviews, complaint data, and more to compile this list of the 10 worst car insurance companies in 2023.

How We Determined the Worst Auto Insurers

Our rankings are based on:

• Expert research: Analysis from Consumer Reports and J.D. Power identifying the lowest-rated insurers.

• Complaint data: NAIC and BBB complaint index showing companies generating the most grievances.

• Customer reviews: Policyholder evaluations on sites like Trustpilot.

• Claims satisfaction: J.D. Power claims servicing study results.

• Our editing expertise: Over 15 years of knowledge on what makes a good or bad auto insurer.

We weighed these factors to land on 10 companies that consistently underperform for consumers. There are plenty of better options out there.

10 Worst Car Insurance Companies of 2023

Here are the 10 auto insurers to be wary of based on expert and consumer input:

10. The General

• Ultra-low J.D. Power claims satisfaction scores

• VA and MA prohibited sales due to complaints

• Known for denying claims

9. Kemper

• Ranks low in Consumer Reports customer satisfaction

• High volume of complaints in Texas and California

• Major rate hikes after claims filed

8. National General

• Consistently below average in J.D. Power studies

• Numerous 1-star reviews citing claim denial

• Complaint index significantly higher than competitors

7. Mercury

• Among lowest scorers in J.D. Power shopping study

• High complaint ratios in Midwest and Western states

• Customer frustration with poor response to claims

6. MAPFRE

• Earns bottom scores for customer satisfaction from Consumer Reports

• Poor marks for claim process and slow pay-outs

• Higher pricing than competitors in most states

5. MetLife

• Ranks low in J.D. Power shopping experience study

• Underperforms in complaint index studies

• Known for massive rate hikes after accidents

4. Allstate

• Numerous lawsuits over unfair claim denials

• Uses software to offer lowball settlement offers

• Consistently bottom scores from Consumer Reports

3. Farmers

• Incentivized employees for low claim payouts

• Lawsuits allege manipulated damage estimates

• Thousands of complaints on underpaid claims

2. State Farm

• Faces lawsuits in 48 states over claim payment practices

• Used manipulated auto body shop surveys

• Intentionally denied and delayed valid injury claims

1. Liberty Mutual

• Ranks dead last in Consumer Reports satisfaction

• Scores lowest in J.D. Power shopping study

• Consistently among highest complaint ratios

While not every policyholder has issues with these companies, they have disproportionate complaint volumes and the worst reputations according to experts.

What Makes These Auto Insurers So Bad?

Looking closer at the track records of these 10 worst insurers reveals some common themes:

Denying legitimate claims – Allstate, Farmers, and State Farm have recently faced major lawsuits over systematically denying claims that should have been covered.

Delivering lowball settlements – Allstate and other insurers use computer programs to make intentionally low offers to get claimants to take less than they deserve.

Providing poor customer service – Insurers like MetLife, MAPFRE, and Mercury generate frequent complaints about unhelpful staff and lack of responsiveness.

Deceptive sales tactics – Companies like The General lure people in with seemingly cheap rates, only to jack prices sky-high after claims are filed.

Raising rates drastically – Kemper and other bottom-ranked insurers are quick to impose massive rate hikes after accidents, often when the driver wasn’t at fault.

Misrepresenting policy terms – Liberty Mutual and several other poor performers use fine print clauses to avoid paying out on guarantees made during the sales process.

While these practices allow these insurers to maximize profits, they can leave drivers financially devastated after collisions.

Warning Signs of a Bad Car Insurance Company

How can you spot a potentially problematic provider when shopping for coverage? Here are some red flags to watch for:

• A history of lawsuits over claims practices – Research companies to see if they’ve been taken to court by state regulators or customers for systematically denying claims.

• Low ratings from experts – Independently compiled ratings from organizations like J.D. Power and Consumer Reports can indicate poor treatment of customers.

• High complaint ratios – Check industry complaint data to see if a company generates more grievances than competitors.

• Overwhelming negative reviews – Don’t ignore one-star reviews from actual customers sharing their bad experiences.

• Vague explanations of policy caps – Beware if representatives can’t clearly explain your coverage limits and obligations.

• Steep rate hikes after accidents – Walk away if non-fault claims lead to drastically increased payments for customers down the road.

Dig into the history and practices of any company you’re considering to avoid signing with a bad actor.

How to Choose a Reliable Car Insurer

The best way to avoid getting stuck with a lousy insurance company is to carefully consider your options:

• Compare multiple quotes to find the best value in your area, rather than going with the cheapest initial rate alone.

• Research ratings and reviews for companies you’re interested in for an unbiased view of their customer service track record.

• Verify complaint ratios against other top insurers to gauge if a company gets more or fewer grievances than competitors.

• Look for financial stability ratings to ensure the company will remain solvent over the long-term.

• Work with an independent agent who can explain different providers’ policies to help select the right fit.

Taking your time upfront to thoroughly compare insurers can prevent many headaches down the road if you need to file a claim.

Top Recommended Auto Insurance Companies

While we advise avoiding the 10 worst companies, these top insurers stand out in quality:

Amica – Consistently earns stellar ratings for customer service and claims processing.

Auto-Owners – Maintains extremely high customer loyalty and satisfaction over decades.

Erie – Ranks high in JD Power studies and boasts affordable rates.

Safeco – Offers innovative tools and discounts geared towards careful drivers.

USAA – Great service and low prices exclusively for military members and veterans.

Work with an independent agent to get quotes from our recommended companies. They have proven track records of integrity when customers file claims.

Make an Informed Choice with Your Car Insurance Provider

Don’t get stuck with insufficient coverage or poor service – bypass the worst insurers we identified through expert analysis and consumer feedback. Taking time to research companies can steer you towards a stellar provider that has your back when accidents happen.