Common Insurance Customer Complaints

In a report issued by the National Association of Insurance Commissioners (NAIC), based on data from 2008, delays in claim settlement was the number one reason for customer complaints. Such delays pertained to slow payment of settlements, delayed appraisals, and lack of response to inquiries from customers. For example, a wrecked vehicle may have been approved for repairs, but once the vehicle had been repaired the customer waited what seemed to be an inordinate amount of time for the insurance company to make the settlement, resulting in additional losses of time and income for the customer.

Number two on the top three insurance customer complaints was the denial of claims. In this case, customers need to be aware of how their policies are worded, and wary of clauses that give the insurance company an easy way out of settling the claim. To be fair, however, the insured person needs to make sure that their policy is in order and that anyone who will be driving the car is listed on the policy. After all, not all denials are unfair, and insurance companies who deny claims out of hand find it hard to retain customers.

Rounding out the top three, customers complain often that settlement offers are not satisfactory, resulting in insufficient repairs or unexpected out of pocket expenses for the customer. In this respect, it is important that the customer understand that insurance companies use estimates to guide them, and will often settle for the lowest amount. This is good business for any company, and not an effort by insurance companies to slight their loyal customers. Again, the best defense for the policyholder is to know what their policy says, and to understand how the amount of a settlement will be reached before the accident happens.

If you are dissatisfied with your insurance company, take advantage of free insurance quotes from Internet websites to look for better support or coverage. Compare policy differences closely, though, because a better insurance premium could be a sign that some key point has been left out, or that your limits have been adjusted to provide a better premium rate without actually saving money at all. Not all car insurance policies are the same, and it is up to the customer to get informed about what they are buying.

Posted in Car Insurance, Insurance.