Is there a chart somewhere on the net that compares the timing of auto insurance companies settling on claims?

Question

I am trying to find out if Farmers auto insurance settles quicker than Nationwide insurance and vice versa. I have Farmers auto and home insurance now and considering a move to Nationwide.

Answer 1

Hard question to answer.  There are simply too many "what-ifs" in each claim.  Just because a company took along time to close a claim doesn't necessarily mean it was the company stalling or holding out payment.  Each state has fair claim laws that dictate what is a reasonable amount of time to communicate a decision on a claim.  

It seems that speed of settlement is important to you so I won't try to change your mind.  I, as an agent however, have seen too many people fall for a company because of just one thing.  It could be strictly a lower price, some "discount" or simply savy marketing.

My recommendation is to find a company that can deliver more of a total package for you.  I would start with the agent.  Many time just having a thorough, competent and professional agent can speed up the claims process, among other things.  This agent should be one that is close to you or your work if at all possible (it just makes your life easier).  You can get quotes from a few agents and then compare how the rates apply to your situation.  

Again if speed of claims is important to you then by all means continue your search for the fastest.  But you should consider that if you are a good risk, how many claims are you turning in and how frequent?  If you turn in a lot of claims (1 or more per year for a few years in a row) you will end up paying so much in premium it won't matter how "fast" any company is at paying you.

Answer 2

I doubt if this is free and on the Internet.

In theory you can answer the question  as follows:  Get the statutory annual statements for the two companies from your state insurance department, go to Schedule P for the two lines of business, and calculate ratios of accident year paid claim counts to incurred claim counts for successive twelve month periods.

In practice it is not easy to get these documents, and this is not an easy calculation.

I would not base a decision on this result.  If your agent handles both companies, you might ask him for his opinion. But in the end, you probably just want to compare price.

Answer 3

Insurance companies are grade rated, just like a report card.

The grade includes the settling of claims, financial status, service, and so forth.

The highest rating is an A++.  Any A rated company that you insure with should be pretty darn good at paying out.  Of course that's no guarantee that all claims go smoothly.

I don't remember what these two company ratings are but just call their offices and ask.  This is also published in the library as public information, and you may also be able to get it from the company websites.  Hope this helps.

Answer 4

Nope, not for claims settlement.

The best you can do, is look for complaints, at your state insurance department website.