Recent Recovery Reports Highlight Usefulness of Insurance Reviews

Recent reports showing that regulators in California, Michigan, Georgia, Montana, Ohio and North Carolina together recovered nearly $150 million last year on behalf of consumers who had been wronged by coverage providers highlights the valuable insight shoppers can get by researching auto insurance reviews and complaint data online.

A large portion of the $150 million recovered for policyholders was the result of coverage disputes, overcharges and unfair denials of claims.

State regulators returned the sum while acting as an objective mediator between insurers and policyholders. When consumers and coverage providers cannot settle their differences themselves, policyholders can bring their complaints to state regulators for some resolution.

For the past three years, consumers have consistently filed the most grievances because they were dissatisfied with the way their insurers handled their claims, according to data compiled and made available by the National Association of Insurance Commissioners.

More specifically, consumers most frequently complain about delays and denials of claims, as well as dissatisfaction with a claim settlement. Complaints of this type accounted for more than half of the total complaints resolved between 2009 and 2011.

Once a complaint is resolved, the regulatory office enters it into a database and eventually publishes a report showing how many complaints each company had for a given year. Many consumers are encouraged to consult these reports when looking for a new provider so they can get one that has a good track record.

But the fact is that consumers can only gain so much insight into a company’s performance by looking at complaint statistics.

Another, more personal way of getting past and present policyholders’ opinions about a specific policy provider is to research user-submitted car insurance reviews on the Internet.

One place to read and post comments about a company is the car insurance reviews section of OnlineAutoInsurance.com.

The site, which was originally launched in the summer of 2011, has already accumulated hundreds of reviews for 14 of the country’s largest coverage providers.

In a press release issued when the site launched, the company said using both regulator-provided complaint statistics and the user-submitted reviews should give consumers a full picture of a company’s history for customer satisfaction.

About Matthew Morisset
Matthew Morisset is a proud alumnus of the University of Redlands, where he obtained a degree in English Literature. Utilizing his passion for analysis and writing, Matthew looks for important trends in the auto insurance industry and their implications for consumers and the market as a whole.

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