New York State Insurance Department Ranks Auto Insurers By Consumer Complaints
Superintendent of Insurance Neil D. Levin has released the Department's annual ranking of consumer complaints against New York State's automobile insurance companies. The companies ranked at the top of the list performed the best in 1997 in terms of consumer complaints. The ranking reflects the claims-handling ability of these insurers and serves as an indicator of policyholder satisfaction.
TIG Insurance Group—with no complaints upheld against it—took the top spot in the ranking for the second year in a row. Amica Mutual Insurance Company ranked number two, followed by USAA Group and Netherlands Insurance Companies. Amica and Netherlands were also among the top five performers in the 1996 ranking. USAA, in 12th place in last year's ranking, writes only military personnel and their dependents.
For the third consecutive year, Country-Wide Insurance Company had the most complaints per $1 million in two-year average premium. Country-Wide, with a complaint ratio of 1.15, was followed by Winterthur U.S. Holdings Group and Legion Insurance Company. It should be noted that Legion Insurance Company writes only physical damage coverage, i.e., collision and comprehensive.
The complaint ratio is calculated by dividing the number of private passenger auto complaints upheld against an insurer and closed by the Department's Consumer Services Bureau in 1997 by the insurer's 1996-1997 average private passenger auto premium volume in New York State.
This year for the first time, the complaint ranking includes 161 complaints upheld against insurers for late payment of no-fault arbitration awards. Automobile insurance policyholders with disputes about no-fault claims can seek independent arbitration. No-fault regulations require insurers to pay these claims within 30 days of an arbitrator's decision.
"Under Governor Pataki's leadership, the auto insurance marketplace in New York is more competitive than ever," said Levin. "For the last two years we have seen overall rate decreases for auto insurance, and we expect that this trend will continue. In addition to cost, consumers are concerned with service. The complaint ranking provides consumers with an invaluable tool for comparison shopping for auto insurance."
Last year marked the first time since 1974, when no-fault insurance was implemented, that overall auto insurance rates in New York decreased. In 1997, however, 31 insurance companies filed for rate decreases. So far in 1998, 48 auto insurers have filed for rate decreases.
The ten best performers in 1997 were:
- TIG
- Amica Mutual
- USAA
- Netherlands
- State-Wide
- Allmerica Financial
- Farm Family
- Tri-State Consumer
- Berkshire-Hathaway (GEICO)
- Atlantic
The ten insurers with the highest complaint ratios were:
51 Country-Wide
50 Winterthur US Holdings
49 Legion
48 Leucadia
47 Merchants Mutual
46 AMEX Assurance
45 American International
44 Eveready
43 PW Group
42 Utica National
The five largest auto writers in New York State are ranked as follows: Allstate, State Farm, Berkshire-Hathaway (GEICO), Travelers and Nationwide.