New Stats Show Best and Worst Michigan Insurance Companies

Best and worst Michigan auto insurersNews statistics released by the Michigan Office of Financial and Insurance Regulation show that regulators received only about 690 complaints from auto insurance policyholders in 2011.

Policyholders in the state most-frequently contacted the office with complaints about how their insurers handled claims, how they communicated with policyholders and how they priced policies.

The new statistics show 2011 complaint track records for the state’s largest auto coverage providers. Out of the 79 insurers that had more than $1 million worth policies in place last year, Farm Bureau Mutual Insurance came out on top for having the lowest complaint ratio, meaning it had the fewest complaints per premium dollar.

Although the practice varies slightly by state, Michigan regulators base a complaint ratio by taking a company’s total number of complaints and dividing them by the amount of premiums they had in place that year.

Farmer Bureau Mutual wrote $71.5 million worth of premiums in 2011 but only received one complaint, giving it a complaint ratio of 0.01.

The average company had about eight complaints and a complaint ratio of about 0.27.

The company with the worst track record was Patriot General, which received three complaints while having only about $1.5 million worth of premiums in place. Patriot General’s ratio was 1.98.

Regulators make these statistics publicly available so that consumers shopping for a new provider can have something to reference in order to get a feel for how satisfied consumers tend to be with a particular company. Getting cheap auto insurance in Michigan is great, but price isn’t the only thing that drivers should be evaluating. By looking at a complaint ratio, shoppers can get a general idea of how likely they are to have issues with a company.

About Ben Zitney
Benjamin Zitney has been covering the auto insurance industry for the past 2.5 years. Before coming to Online Auto Insurance News, he produced an extensive company history of the 30-year-old California Joint Powers Insurance Authority and worked at the Cal State Long Beach Daily Forty-Niner as a reporter, copy editor and news editor.

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