Anytime you are up against your insurance company, dealing with a claim or a lapse in coverage, it can be highly stressful. When working with one of the top 9 worst insurance companies in America, the challenge increases tenfold.
In a recent study from the American Customer Satisfaction Index (ACSI), the case was cracked wide open to shed light on lackluster customer satisfaction levels across various insurance sectors. Join us as we break down the worst insurance companies for paying out claims and customer dissatisfaction – that way, you can make more informed decisions for your own insurance needs!
So, Which Insurance Company Shouldn’t I Trust?
There are many reputable insurance companies across different sectors. However, as a whole, it is crucial to remain vigilant when it comes to your coverage.
Insurance adjusters are trained to employ sneaky tactics to push you to accept less than you deserve. The recent ACSI Insurance and Health Care Study 2022-23 took a look at customer satisfaction ratings based on specific standards to determine which are the worst insurance companies around. Let’s look at the findings across three main insurance categories: Property and Casualty, Life, and Health Insurance.
Property and Casualty Insurance
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Progressive
- 2023 Customer Satisfaction Index: 77
- 2022 Customer Satisfaction Index: 76
- Percent Change: +1%
Progressive received negative customer satisfaction ratings in every geographical region in the 2023 J.D. Power U.S. Auto Insurance Study, falling far below the national standard – especially in the Central, North Central, and Mid-Atlantic regions of the United States.
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Farmers
- 2023 Customer Satisfaction Index: 75
- 2022 Customer Satisfaction Index: 75
- Percent Change: 0%
Farmers Insurance has a negative reputation as one of the worst insurance companies for drivers with imperfect records. Their rates are far higher than the national average for drivers with a poor track record – a shocking 75% higher on average for drivers with a prior speeding ticket.
- Chubb
- 2023 Customer Satisfaction Index: 67
- 2022 Customer Satisfaction Index: Not Measured
- Percent Change: Not Applicable
In spite of its size and impressive assets (to the tune of $174 billion), Chubb ranked in last place for customer satisfaction with a meager score of 67.
Life Insurance
4. Nation Wide
- 2023 Customer Satisfaction Index: 79
- 2022 Customer Satisfaction Index: 79
- Percent Change: 0%
In contrast to their catchy jingle, Nationwide is NOT always on your side. They possess the most regional below-average J.D. Power customer satisfaction scores and poor insurance claims satisfaction scores.
- Prudential
- 2023 Customer Satisfaction Index: 79
- 2022 Customer Satisfaction Index: 78
- Percent Change: +1%
In 2023, the U.S. Department of Labor reached a settlement with Prudential Insurance, requiring the company to revise its poor practices. A federal investigation found the bad insurance company was collecting steep life insurance premiums for extended periods, only to deny the insurance claims after the participants died – citing the participants’ failure to provide proper evidence of insurability at the time of their application.
- Mass Mutual
- 2023 Customer Satisfaction Index: 77
- 2022 Customer Satisfaction Index: 78
- Percent Change: -1%
While Mass Mutual has a decent BBB rating, its customer satisfaction ranking is relatively low, with many clients complaining that they struggle to get a live person on the phone when experiencing issues relating to their coverage.
Health Insurance
- Centene
- 2023 Customer Satisfaction Index: 75
- 2022 Customer Satisfaction Index: 72
- Percent Change: +4%
Centene may currently rank as one of the worst insurance companies in America, but it is making strides in improving its customer satisfaction index. If this upward trend continues, they might fall off this report in upcoming years.
- Kaiser Permanente
- 2023 Customer Satisfaction Index: 73
- 2022 Customer Satisfaction Index: 73
- Percent Change: 0%
The general opinion amongst current clients of Kaiser Permanente seems to be that it is an excellent insurer – if you don’t have many health issues. Those who have multiple or chronic health issues don’t tend to feel as supported by this network – hence the lower customer satisfaction ranking.
- Cigna
- 2023 Customer Satisfaction Index: 72
- 2022 Customer Satisfaction Index: 71
- Percent Change: +1%
Cigna Insurance has a high rate of insurance claim denials and has even been accused of allegedly using an algorithm to deny claims – rejecting over 300,000 requests for payment over the course of only two months.
How Can I Leverage This Information to Avoid Working with a Bad Insurance Company?
These may be some of the most widely recognized insurance companies in the industry, however, their low satisfaction scores indicate that clients tend to face significant challenges when dealing with them.
So, how can you use this information to your advantage?
Understanding the components that contribute to customer satisfaction levels can help you when you are in the market for a new insurance provider, evaluate the quality of service you are receiving, or consider your options when having difficulties with an insurance claim.
Additionally, there are a few key takeaways to consider when choosing an insurance company based on the customer satisfaction index:
- Satisfaction does vary by sector, with health insurance companies generally scoring lower.
- The size of the company does not always equate to the level of satisfaction you will receive as a client.
- Improvement is possible, with some companies showing significant advances over the years.
- Consistency service, even if it isn’t stellar, can be more reliable.
Angel Reyes & Associates Can Help You Deal with a Problematic Insurance Company
The compassionate team of attorneys at Angel Reyes & Associates takes pride in helping our valued clients face the challenges of complex insurance issues head-on. Allow us to help you by removing the stress from the equation as we handle all communication and negotiation with your insurance company on your behalf.
If you’re facing issues with your insurance provider, need help when your insurance claim is denied, or are considering trying to get out of your current policy contract, don’t wait, don’t hesitate. Contact us today for a free consultation, or stop by one of our offices in Dallas, Fort-Worth, Houston or Austin so we can discuss your case face-to-face. You’re in good hands with Angel Reyes & Associates.
