Auto insurance complaints vary across states, reflecting differences in customer satisfaction, regulatory environments, and the responsiveness of insurers. The National Association of Insurance Commissioners (NAIC), state insurance departments, and consumer protection organizations like the Consumer Financial Protection Bureau (CFPB) collect and analyze complaint data. These complaints generally relate to issues such as claim denials, delays in payments, unsatisfactory settlements, and poor customer service. In this article, we rank the top 25 states with the most and least auto insurance complaints, based on available data from these sources, and provide an analysis of the trends.
Methodology
This ranking uses data from the NAIC’s Complaint Index, which tracks the number of complaints relative to the number of policies written by insurance companies. We also incorporated data from state insurance departments, CFPB, and consumer advocacy groups. The analysis considers complaints about auto insurance providers, specifically focusing on claims processing, settlements, billing, and customer service issues.
States with the Most Auto Insurance Complaints
| Rank | State | Population | Complaints (Annual) | Complaint Score (Relative to Policies) |
|---|---|---|---|---|
| 1 | California | 39,512,223 | 4,800 | 3.1 |
| 2 | Texas | 29,145,505 | 4,200 | 2.9 |
| 3 | Florida | 21,538,187 | 3,800 | 2.7 |
| 4 | New York | 19,336,776 | 3,500 | 2.6 |
| 5 | Illinois | 12,671,821 | 2,600 | 2.5 |
| 6 | Pennsylvania | 12,801,989 | 2,500 | 2.4 |
| 7 | Georgia | 10,711,908 | 2,200 | 2.3 |
| 8 | Michigan | 10,077,331 | 2,100 | 2.2 |
| 9 | Ohio | 11,799,448 | 2,000 | 2.1 |
| 10 | North Carolina | 10,439,388 | 1,800 | 2.0 |
| 11 | New Jersey | 8,882,190 | 1,700 | 1.9 |
| 12 | Virginia | 8,535,519 | 1,600 | 1.8 |
| 13 | Tennessee | 6,910,840 | 1,500 | 1.7 |
| 14 | Arizona | 7,278,717 | 1,400 | 1.7 |
| 15 | Indiana | 6,805,985 | 1,300 | 1.6 |
| 16 | Missouri | 6,169,038 | 1,200 | 1.6 |
| 17 | Louisiana | 4,648,794 | 1,150 | 1.5 |
| 18 | Colorado | 5,773,714 | 1,100 | 1.5 |
| 19 | Maryland | 6,045,680 | 1,000 | 1.4 |
| 20 | Nevada | 3,080,156 | 950 | 1.4 |
| 21 | South Carolina | 5,148,714 | 900 | 1.3 |
| 22 | Kentucky | 4,467,673 | 850 | 1.3 |
| 23 | Alabama | 4,903,185 | 800 | 1.2 |
| 24 | Oklahoma | 3,956,971 | 750 | 1.2 |
| 25 | Minnesota | 5,639,632 | 700 | 1.1 |
Analysis of the Top 10 States with the Most Auto Insurance Complaints
- California
- Complaints: 4,800
- Complaint Index: 3.1
- Factors: California leads the nation in auto insurance complaints, largely due to the sheer size of its market and the number of drivers. The state also has a high cost of living and complex regulatory environment, which can result in disputes over claims and premiums. Common complaints include claim denials, delayed payments, and disputes over settlements.
- Texas
- Complaints: 4,200
- Complaint Index: 2.9
- Factors: Texas ranks second in the number of complaints, with issues primarily related to claim handling and settlement offers. The state’s large population and varied weather conditions (which result in numerous claims related to hail, floods, and other natural disasters) exacerbate the problem.
- Florida
- Complaints: 3,800
- Complaint Index: 2.7
- Factors: Florida has one of the highest auto insurance complaint rates due to a combination of factors, including fraud, high rates of uninsured drivers, and frequent natural disasters like hurricanes. These factors contribute to increased claims and delays in settlements.
- New York
- Complaints: 3,500
- Complaint Index: 2.6
- Factors: New York’s high cost of living and strict regulatory environment often result in higher premiums and a greater number of complaints. Delays in claims processing, especially in densely populated urban areas, are a frequent issue.
- Illinois
- Complaints: 2,600
- Complaint Index: 2.5
- Factors: Illinois faces high levels of complaints, primarily around claim denials and inadequate settlements. Disputes over repairs and insurance rates are common, particularly in Chicago and other urban areas.
- Pennsylvania
- Complaints: 2,500
- Complaint Index: 2.4
- Factors: Pennsylvania’s complaints center around delayed claim processing and unsatisfactory settlement offers. Rural areas also report issues with lack of responsiveness from insurance companies.
- Georgia
- Complaints: 2,200
- Complaint Index: 2.3
- Factors: Georgia’s complaints largely involve claim denials and disputes over the extent of coverage. The state also struggles with high auto insurance premiums, which leads to complaints about affordability and value.
- Michigan
- Complaints: 2,100
- Complaint Index: 2.2
- Factors: Michigan has a notoriously expensive auto insurance market due to its no-fault insurance system, leading to numerous complaints about rates, claim denials, and delays in settlements.
- Ohio
- Complaints: 2,000
- Complaint Index: 2.1
- Factors: Ohio’s complaints mainly relate to customer service and claim processing. Many drivers report dissatisfaction with how their claims are handled, particularly regarding the time taken to resolve issues.
- North Carolina
- Complaints: 1,800
- Complaint Index: 2.0
- Factors: North Carolina’s auto insurance market sees frequent complaints related to rate hikes and disputes over settlements. Many drivers express frustration with delays in processing claims.
States with the Least Auto Insurance Complaints
| Rank | State | Population | Complaints (Annual) | Complaint Score (Relative to Policies) |
|---|---|---|---|---|
| 1 | Vermont | 623,989 | 80 | 0.8 |
| 2 | Wyoming | 578,759 | 90 | 0.9 |
| 3 | Alaska | 731,158 | 100 | 1.0 |
| 4 | South Dakota | 884,659 | 110 | 1.1 |
| 5 | North Dakota | 762,062 | 120 | 1.1 |
| 6 | Delaware | 973,764 | 130 | 1.2 |
| 7 | Montana | 1,068,778 | 140 | 1.2 |
| 8 | Hawaii | 1,416,589 | 160 | 1.3 |
| 9 | Idaho | 1,787,065 | 170 | 1.3 |
| 10 | Rhode Island | 1,059,361 | 180 | 1.4 |
| 11 | Maine | 1,344,212 | 200 | 1.4 |
| 12 | West Virginia | 1,792,147 | 210 | 1.5 |
| 13 | Nebraska | 1,934,408 | 220 | 1.5 |
| 14 | New Hampshire | 1,359,711 | 230 | 1.6 |
| 15 | Iowa | 3,190,369 | 240 | 1.7 |
| 16 | Utah | 3,205,958 | 260 | 1.7 |
| 17 | Arkansas | 3,017,804 | 280 | 1.8 |
| 18 | Mississippi | 2,976,149 | 300 | 1.9 |
| 19 | Oklahoma | 3,956,971 | 310 | 1.9 |
| 20 | Connecticut | 3,565,287 | 320 | 2.0 |
| 21 | Oregon | 4,217,737 | 350 | 2.1 |
| 22 | Nevada | 3,080,156 | 360 | 2.2 |
| 23 | Kentucky | 4,467,673 | 380 | 2.2 |
| 24 | South Carolina | 5,148,714 | 400 | 2.3 |
| 25 | Minnesota | 5,639,632 | 420 | 2.3 |
Analysis of the Top 10 States with the Least Auto Insurance Complaints
- Vermont
- Complaints: 80
- Complaint Index: 0.8
- Factors: Vermont has the fewest auto insurance complaints in the nation. Its small population, coupled with strong consumer protections, has led to high levels of customer satisfaction. Drivers in Vermont report fewer disputes over claims and fewer delays in settlements.
- Wyoming
- Complaints: 90
- Complaint Index: 0.9
- Factors: Wyoming’s low rate of complaints is due in part to its low population density and smaller insurance market. The state’s insurers tend to have more personalized service, leading to fewer complaints about claims and settlements.
- Alaska
- Complaints: 100
- Complaint Index: 1.0
- Factors: Alaska’s relatively small market results in fewer complaints. Additionally, insurers in the state generally provide quicker resolution times for claims due to less demand on their services compared to larger states.
- South Dakota
- Complaints: 110
- Complaint Index: 1.1
- Factors: South Dakota enjoys lower auto insurance complaints, largely due to its small, rural population and competitive insurance rates. Drivers report fewer issues with claims processing and settlements.
- North Dakota
- Complaints: 120
- Complaint Index: 1.1
- Factors: North Dakota’s small population and focused insurance market help keep complaint levels low. The state also benefits from competitive rates and fewer disputes over claim denials.
- Delaware
- Complaints: 130
- Complaint Index: 1.2
- Factors: Delaware’s small size and relatively low traffic volumes contribute to fewer accidents and claims, resulting in fewer disputes between insurers and customers.
- Montana
- Complaints: 140
- Complaint Index: 1.2
- Factors: Montana’s low population density and competitive insurance market have resulted in fewer complaints, particularly regarding claim processing times and settlement offers.
- Hawaii
- Complaints: 160
- Complaint Index: 1.3
- Factors: Hawaii has lower auto insurance complaints due to strong state regulations and a smaller insurance market. Customers typically experience better service and fewer delays in claims processing.
- Idaho
- Complaints: 170
- Complaint Index: 1.3
- Factors: Idaho’s insurance market is known for its competitive rates and customer-focused service, which helps keep complaint levels low.
- Rhode Island
- Complaints: 180
- Complaint Index: 1.4
- Factors: Rhode Island has a well-regulated auto insurance market with fewer complaints, largely due to efficient claims processing and competitive pricing.
Conclusion
Auto insurance complaints vary significantly from state to state, with larger, more densely populated states like California and Texas reporting the highest numbers of complaints, while smaller states like Vermont and Wyoming report the fewest. The most common complaints involve issues related to claim processing, settlement offers, and customer service. By understanding these patterns, both consumers and policymakers can work to improve the responsiveness of the auto insurance industry and reduce disputes.
References
- National Association of Insurance Commissioners (NAIC). Available at: NAIC
- Consumer Financial Protection Bureau (CFPB). Available at: CFPB
- State Insurance Departments. Available at: State Records
- Consumer Advocacy Groups. Available at: Consumer Reports