A new ranking of the top auto, home and renters insurance carriers based entirely on policyholder feedback netted some strong results for USAA, which topped two of the categories and placed second in the other.
Clearsurance, which bills itself as “the first crowdsourced community of insurance consumers,” published its first annual top auto, homeowners and renters insurance companies lists on Jan. 16.
Texas-based USAA, a national company for military members and their families, ranked No. 1 for homeowners and renters insurance while finishing second behind New Jersey Manufacturers Insurance Company for auto insurance. Geico was the only other company to land on all three lists.
North Andover, Mass.-based Clearsurance is promoting the rankings as being completely unbiased, and based entirely on the experiences that current and former policyholders have had with their auto, homeowners and renters insurance companies. Unlike the many other “top company” lists published for the industry, Clearsurance says its rankings are transparent and backed by data that shows why companies are rated and ranked as they are. The ratings for each company are derived solely from more than 50,000 customer reviews submitted by current and former policyholders on Clearsurance’s website in 2017.
Many mid-size, regionally focused insurance companies performed well in the rankings, most notably New Jersey Manufacturers (NJM), which edged out USAA to be named the top-ranked car insurance company. Additionally, Erie Insurance Group ranked No. 2 for homeowners and No. 5 for car insurance.
“The insurance market is dominated by a handful of companies that consumers are accustomed to seeing advertised on TV,” said Michael Crowe, CEO and co-founder of Clearsurance. “But what we are finding is that the market share isn’t necessarily a reflection of a company’s service performance. Many regional companies are held in high regard by their policyholders, and given that, some of those companies have earned their ranking on our lists ahead of some of the more well-known global insurance brands. This further points to the need for consumers to educate and advocate for themselves when it comes time to assess policies, rather than choosing the least expensive option or the most recognized brand.”
Each company’s score is generated using an algorithm that factors in consumer ratings for the overall company and customer service, as well as their likelihood to recommend and to renew. Nearly half (43%) of the reviews submitted to Clearsurance in 2017 were from policyholders who had experienced at least one claim with their company. To be eligible for ranking, Clearsurance set a 100-review minimum threshold for each specific line of insurance.
More detail about each company ranked can be found in the links from each list below.
Best Car Insurance Companies 2018
- N.J. Manufacturers Insurance Co.
- USAA
- Amica Mutual Insurance Company
- Shelter Mutual Insurance Company
- Erie Insurance Group
- Auto-Owners Insurance Group
- AAA
- The Hartford
- Geico
- American Family Insurance
Best Homeowners Insurance Companies 2018
- USAA
- Erie Insurance Group
- Amica Mutual Insurance Company
- AAA
- The Hartford
- State Farm Insurance Company
- Progressive Corporation
- Safeco Insurance Company of America
- Geico
- Farmers Insurance Group
Best Renters Insurance Companies 2018
- USAA
- State Farm Insurance Company
- Geico
- Progressive Corporation
- Allstate Insurance
About Clearsurance: Clearsurance is an independent and neutral community of insurance consumers who are leveraging the wisdom of the crowd to get the best insurance to meet their needs. To learn more, please visit www.clearsurance.com.
Apparently they're unaware that GEICO is not a homeowners insurance company.
Geico’s agency does sell homeowners insurance. They are white labeling the product by using other insurer’s paper. The customer, as evidenced by thousands of consumer reviews in the Clearsurance community, identifies Geico as their insurer, not the entity that has the paper. It’s all very confusing to the consumer and another example of the lack of transparency that exists in the industry. We made a business decision to identify Geico as the homeowners insurer, as that is the brand identified by consumers that buy homeowners through the Geico distribution model.
It does highlight the point that Clearsurance has an opportunity to better clarify this arrangement on Geico’s profile page for the benefit of its community members.
Mike Crowe, CEO
Clearsurance
I never cease to be amazed at just how effective USAA's marketing is. Clients literally think that they are lucky to have USAA's insurance when very reputable markets with similar user experiences can offer much cheaper premiums.
Very true, my husband is a Veteran and USAA was not the least expensive for us by far. I just wanted a quote to see what it was all about. That commercial where they make it sound like the Vets earned this coverage and need to use it or loose now and pass it along to your family is really good.
True, USAA is usually not the lowest premium, but they have a long lasting reputation for excellent claims service, including paying claims that most insurers would deny up front. A lot of people feel a few extra dollars is worth knowing they will be covered.
State Farm was built on this model, frequently not the lowest premium, but neighborhood agents, friendly agents, good claims service. Over the years, they have changed back and forth, along with many other carriers.
Geico is thriving nowadays because todays society simply doesn't want to talk to people. Online, texts, perhaps email, okay, phone, no way. Times have changed. Geico is capitalizing on it.
Hey DJS, you having any luck with that email marketing product yet?