Car Insurance Companies With the Worst Customer Satisfaction

Farmers is the worst ranked car insurance company for customer satisfaction, with a whopping 501 complaints to the Better Business Bureau.

Free Car Insurance Comparison

 Secured with SHA-256 Encryption

Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p...

Full Bio →

Written by

Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

Full Bio →

Reviewed by Joel Ohman
Founder & CFP®

UPDATED: May 18, 2020

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.

Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

Here's what you need to know...

  • J.D. Power gives us the most comprehensive customer survey with rankings based on five metrics
  • In regard to customer satisfaction, we have listed the top seven worst auto insurance companies
  • Farmers is number one on the list, so you’d better keep your eye on them

Every year, J.D. Power and Associates publishes rankings of car insurance companies based on customer satisfaction.

They call customers in the most comprehensive survey possible, then release the results in star ratings every year with the rankings based on five metrics:

  • pricing
  • policies available
  • billing
  • being reachable
  • overall satisfaction

The best car insurance company is (drumroll please) … Amica Mutual. But what insurance company has the most complaints?

We started by taking the bottom seven insurance companies from the J.D. Power survey, then looked at three other customer satisfaction metrics:

  • complaints officially filed with the Better Business Bureau
  • consumer posts put up on Complaints.com
  • consumer posts on P***edConsumer.com

A short reminder: Complaints.com and P***edConsumer.com are anonymous sites, so sometimes their complaints may not reflect the full reality of the situation.

So, to be fair, we weighed J.D. Power and the Better Business Bureau at four times the significance of the anonymous sites.

If you’re looking to see how these companies compare or find better options, simply enter your ZIP code above. Get started today.

The List, from “ Worst” to “the Worst of the Worst”

Free Car Insurance Comparison

Enter your ZIP code below to view companies that have cheap car insurance rates.

 Secured with SHA-256 Encryption

# 7 – GMAC

J.D. Power: 2.5 overall rating (out of 5)
BBB: 0 complaints
Complaints.com: 6 complaints
P***edConsumer.com: 2 complaints

There’s one thing we should be clear about: GMAC has a lot of businesses, and they have a lot of angry customers, thanks to the real estate bubble popping over the last three years.

So you have to sort the homeowner insurance complaints from the auto insurance complaints when doing your research.

Still, GMAC has a clean bill of health from the Better Business Bureau, with no complaints, although they did come in second on Complaints.com with six, mostly about, not surprisingly, customer service.

On P***edConsumer, though, there were only two complaints about their auto division amid many more about their mortgage arm.

So, as long as you don’t buy a house through them, GMAC isn’t all that bad.

# 6 – Mercury

J.D. Power: 2 overall rating (out of 5)
BBB: 0 complaints
Complaints.com: 7 complaints
P***edConsumer.com: 2 complaints

Mercury is another company that the Better Business Bureau likes, with no complaints on record. Then again, they have seven complaints on Complaints.com, all of which give them scathing reviews on customer service.

But there are only two on P***edConsumer.com, so maybe they’re not doing that badly.

# 5 – Encompass

J.D. Power: 2 overall rating (out of 5)
BBB: 0 complaints
Complaints.com: 2 complaints
P***edConsumer.com: 23 complaints

Encompass does great with the Better Business Bureau: they have no complaints for the last three years, and they even get an A+ rating.

Then again, the complaint against them on Complaints.com featured no less than two people looking for lawyers to handle their claims and possibly take Encompass to court.

And P***edConsumer.com brings us what seems to be the biggest problem; if you’re on their insurance, you may be OK, but get hit by one of their drivers, and you’re in for a long, agonizing process of getting your claim processed.

Free Car Insurance Comparison

Enter your ZIP code below to view companies that have cheap car insurance rates.

 Secured with SHA-256 Encryption

Free Car Insurance Comparison

Enter your ZIP code below to view companies that have cheap car insurance rates.

 Secured with SHA-256 Encryption

# 4 – Commerce

J.D. Power: 2 overall rating (out of 5)
BBB: 24 complaints
Complaints.com: 0 complaints
P***edConsumer.com: 11 complaints

Commerce got the overall worst rating from J.D. Power, but comparatively, they’re actually not that bad. Commerce only has 24 complaints from the Better Business Bureau, mostly about their product offerings, and only eight of those are from the last year.

Complaints.com turns up no angry customers, but P***edConsumer.com brings them in at the high end.  Not surprisingly, the comments seem to be almost exclusively about how terrible their customer service is.

The word “rude” comes up a lot. It seems this ranking might just be well-earned.

# 3 – The Hanover

J.D. Power: 2 overall rating (out of 5)
BBB: 28 complaints
Complaints.com: 0 complaints
P***edConsumer.com: 0 complaints

The Hanover ranked near the bottom with these six, but somebody must have had it out for them: they had 28 complaints at the Better Business Bureau.

Although they didn’t even come up at Complaints.com or P***edConsumer.com. Furthermore, every single one of those BBB complaints was closed.

So, they may not be the absolute best, but apparently, the Hanover is working hard to fix their problems. Still, that’s enough to get them a ranking of…ouch…third.

# 2 – 21st Century

J.D. Power: 2 overall rating (out of 5)
BBB: 344 complaints
Complaints.com: 4 complaints
P***edConsumer.com: 1 complaint

21st Century was our second worst company when it came to the Better Business Bureau, and they were almost evenly split between collection issues and product issues.

They also ranked the highest on Complaints.com with four complaints, ranging from abrupt cancellations to surprise price increases and not listening to their customers.

But at least at P***edConsumer.com, they only have one complaint. Then again, that complaint is about their policy more than doubling in price, so maybe that’s not such a good thing.

Free Car Insurance Comparison

Enter your ZIP code below to view companies that have cheap car insurance rates.

 Secured with SHA-256 Encryption

# 1 – Farmers

J.D. Power: 2 overall rating (out of 5)
BBB: 501 complaints
Complaints.com: 1 complaint
P***edConsumer.com: 7 complaints

When it comes to consumer complaints, Farmers fared the worst with the Better Business Bureau: 501 complaints and nearly 300 of those were with the products themselves.

They fared a lot better on Complaints.com; the one complaint was about a minor billing issue and it dated back to 2006.

They only had seven complaints on P***edConsumer but those complaints range from being charged 20 percent for an accident when the customer wasn’t at fault to agents getting the policy completely wrong and ruining a young man’s premiums.

So if you’ve got Farmers, keep your eye on them.

We’ve got all the insurers in one place, so you can measure their costs against your benefits. Remember, when researching your auto insurance, simply enter your ZIP code below.

Free Car Insurance Comparison

Enter your ZIP code below to view companies that have cheap car insurance rates.

 Secured with SHA-256 Encryption

Average Monthly Car Insurance Rates by State