Louisiana Car Insurance Companies: Reactions

64% of Americans are less than “fully engaged” with their insurance company, according to a new Gallup poll.  And our youngest generation, the so-called millennials, are the least engaged of all!  This post breaks down:

  • Why Louisianans hate their insurance companies
  • A list of the 10 Worst Auto Insurance Companies
  • What we can do about it

Insurance Company Engagement by generation

Louisiana Auto Insurance Rates Among Highest in U.S.

Louisiana has the 4th highest car insurance rates in the country! Our average premium is $1,842 – over $500 more expensive than the national average of $1,325.  But we certainly don’t get better service for the extra money.  There are many proposed reasons for the high rates, including:

  • Poor road Conditions: Louisiana’s roads are ranked 40th in the country, which increases the risk & damage to our vehicles.
  • Natural Disasters: Hurricanes can damage vehicles through flooding, high winds, and falling debris.

What Louisianans say about their Insurance Company:

Here’s what residents have to say about their insurance company:

An independent insurance agent in Livonia, Louisiana is disgusted with the industry:

“Information is always varied from rep to rep… Being able to get a hold of a rep is near to impossible, and obtaining accurate information?? Forget about it!”

A Metairie, Louisiana customer posted:

I had an accident in April, here it is August and they still haven’t paid my claim. UN-BE-FREAKIN-LIEVABLE. I saved 55 dollars a month…for this?”

The 10 Worst Insurance Companies:

This leads us to create our own list of the 10 worst insurance companies in Louisiana.  We used multiple data sets to compile our list.  First, we combined existing ‘Worst Insurance Company’ lists from SmartShopProperty Casualty 360Insure.com, who ranked these companies based on surveys of 4,000 customers nationwide. Then we overlaid those scores with the aggregate customer review scores on Consumer Affairs.

The lower the score, the worse the company, so 1st place can be considered the Worst Insurance Company in America:

10th place: Direct General Insurance Company
Insure score: 85.9
SmartShop score: F (more than 4x as many complaints as average)
Consumer Affairs: 1.1 stars

9th place: Allstate Insurance
Insure score: 82.6
Customers who recommend this carrier: 84%
Claims processing stars: 4
Financial strength ratings: A+
Consumer Affairs: 2.5 stars
SmartShop score: A-

8th place: Liberty Mutual Insurance
Insure score: 82.1
Customers who recommend this carrier: 78%
Claims processing stars: 4
Financial strength ratings: A
SmartShop score: B
Consumer Affairs: 1.2 stars

7th place: Titan Insurance/ Nationwide
Insure score: 82
Customers who recommend this carrier: 88%
Claims processing stars: 5
Financial strength ratings: A+
Consumer Affairs: 2 stars

6th place: Farmers Insurance
Insure score: 81.4
Customers who recommend this carrier: 78%
Claims processing stars: 4.5
Financial strength ratings: A-
Consumer Affairs: 1.6 stars

5th place: American Family Insurance
Insure score: 80.7
Customers who recommend this carrier:79%
Claims processing stars: 4
Financial strength ratings: A+

Consumer Affairs: 1.9 stars

4th place: Mercury  Insurance
Insure score: 79.6
Customers who recommend this carrier: 75%
Claims processing stars: 4.5
Financial strength ratings: A-
Consumer Affairs: 1.1 stars

3rd place: Esurance
Insure score: 79.6
Customers who recommend this carrier: 78%
Claims processing stars: 4.5
Financial strength ratings: A+
Consumer Affairs: 1.2 stars

2nd place: Travelers Auto Insurance
Insure score:  78.7
Customers who recommend this carrier: 74%
Claims processing stars: 4.5
Financial strength ratings: A++
Consumer Affairs: 1.6 stars

Worst Insurance Company: 21st Century Insurance
Insure score: 78.1
Customers who recommend this carrier: 83%
Claims processing stars: 3.5
Financial strength ratings: A
Consumer Affairs: 1.5 stars

(Not all companies were represented in the study & we excluded some local companies with incomplete data)

What to Know about Insurance Companies

You may look at these numbers and think “they’re not too bad”; however, let me share some industry information:

  • 92% of people who earn more than $100k per year never switch carriers;
  • The industry considers “good retention” rates 95%; “Average retention” 92%; and “Bad retention” 85% and lower.  Many companies listed are even lower!

Save money car insurance

5 Ways to Reduce Your Car Insurance Rates (and Boost Customer Service)

First, the rates.  Here are 5 ways you can lower your car insurance costs:

  • Do Some Homework: We’ve all seen the insurance commercials, but be sure to arm yourself with data before calling.  Visit trusted and independent websites for reviews and information.
  • Drive Carefully (and ask your family to do the same): There are almost always discounts for safe-driving records!
  • Insure All Cars With the Same Company: You can often get discounts of 15% or more!
  • Ask for a Full List of Discounts: Most of us are familiar with safe-driving discounts, and even good student discounts.  But some companies offer cheaper rates to non-smokers, senior citizens, or professions that are less accident-prone. Just remember to also consider the premium!
  • Reduce Coverage on an Old Car: If your car is 5+ years old, You could consider dropping comprehensive and collision coverage to reduce your insurance costs. It exposes you to additional risk, but remember that the insurance company won’t pay more to fix a car than it’s worth.

With the 4th most expensive premiums in the country, it should come as no surprise to insurance carriers that Louisiana residents expect excellent service. Let’s use this article to hold insurance companies to a higher standard & demand more accountability & a higher level of customer service.

What to do you were Injured in an Accident and are fighting your Insurance Company

You should consider an accident attorney if the insurance company is not willing to pay you for damages to your car or person. You should also consider one if the other driver doesn’t have insurance, or if their insurance coverage is not substantial enough to address all of your damages. It’s crucial that you contact a Monroe car accident attorney immediately so you can learn more about your legal rights and get the help you deserve right away. We would love to talk to you.

Image from Gallup.