Worst Car Insurance Companies in America (2024 Update)

If you own a vehicle, car insurance is a necessary expense. At the same time, not all car insurance companies are created equal, so it pays (literally and figuratively) to do plenty of research to be sure your hard-earned dollars are going to a great company with solid reviews. When rating car insurance companies, there are lots of things to take into consideration. We’ve done the hard work for you to make sure you don’t end up with the worst insurance company.

If you are wondering which car insurance companies are the worst in America, you have come to the right place. Keep reading to learn more about which car insurance companies leave much to be desired.

What are the worst American car insurance companies?

After researching several sources looking for low customer reviews and studying insurance company auto ratings, we found that, according to these complaints, the worst auto insurance companies are all well-known, large firms that are household names. Granted, while no car insurance company will be perfect, our research underscores the importance of taking the time to do plenty of research and find a company that is right for you based on insurance ratings on cars. 

Customer satisfaction ratings affect car insurance companies in different ways, so we wanted to make sure they were legitimate. In addition to checking reviews, we also conducted our own test that involved calling companies to find out for ourselves how simple it was to reach an actual human being, how knowledgeable the company representatives are about available products, and how much misinformation was provided.

Is Allstate one of the worst car insurance companies?

One company whose name often popped up in our research as one of the worst insurance companies was Allstate. As we can see from perusing reviews and auto insurance ratings, many people are displeased with the company. 

Many customers claim that Allstate’s rates are on the high side and that getting coverage for claims can be challenging. As part of our test, we called the company on its 800 number and had to work our way through several menus before we got a live person on the line. The representative was polite enough, if not a bit bored until we asked some specific questions. 

For instance, we inquired about some of Allstate’s various discounts, including its teen driver discount. The agent replied by asking the caller’s age. Next, we asked about multiple discounts and if Allstate offers them. The agent hesitated to answer this question and instead asked us for more information. 

The results of this test were not great. Perhaps the agent was having a bad day or maybe she truly didn’t know the answers to our questions, but either way, our experience was less than satisfactory. Check Allstate car insurance reviews for other opinions.

Read more: Car Insurance Companies With the Worst Customer Satisfaction

Is AIG one of the worst auto insurance companies?

From what we found in our research, customers are frustrated because AIG seemingly has no idea what’s going on. Agents don’t talk to each other, policies aren’t properly communicated, and customer service reps are lost. 

Unfortunately, after conducting our test, AIG’s reputation for incompetence seems to be correct. We called five times, asking the same questions about policies, discounts, and who was covered. With these calls, we got five different answers. 

To its credit, the AIG folks were courteous, but they were also extremely inconsistent. We were accidentally transferred to the wrong department twice during our time on the phone, all of which did not inspire us to give it one of the higher ratings for auto insurance companies.

Is State Farm one of the worst car insurance companies?

State Farm complaints fall into one of two categories — when you go to its repair center for work, the replacement parts that are used are poor quality or the policy contracts are very confusing and can be hard to understand. 

However, State Farm did very well on the phone. The CSR was friendly and polite and did a great job answering our questions about several topics including discounts, car insurance by state, and some of the company’s rules and regulations. 

But after calling State Farm to ask it to go over and explain part of an existing policy, the reps seemed confused and unsure. Granted, the reps made an effort to help by transferring our calls to several other departments for assistance. An hour or so later, a manager in the company’s legal department offered us an apology. State Farm car insurance reviews can provide more information.

The Bottom Line on the Worst Car Insurance Companies in America

Here’s some good news, if you are having problems with your current car insurance company, regardless of whether or not it made our “top three” list of the worst car insurance companies, you can always change companies. 

Shop around, compare quotes, check out customer reviews and ratings of car insurance companies, and maybe consider duplicating our test to see which companies have great customer service over the phone. The worst life insurance companies will not necessarily have the worst insurance ratings for cars, so you have to consider all of your insurance needs separately. This approach should give you a good idea of which company is the best for your car insurance needs.