ASK KIM
Find the Friendliest Auto Coverage
by Kimberly Lankford

I'm shopping around for auto insurance right now and am wondering how I can find out if an insurance company has a good reputation for customer service.

If you've just started shopping, ask your friends and acquaintances for their recommendations and experiences -- especially if they've had to file a claim. If you've already narrowed your search to a few specific companies, check their complaint records. Most state insurance departments publicize the number of complaints they've received for each insurance company doing business in the state. See the drop-down menu on our Insurance page for links to your insurance regulator's Web site.

Focus primarily on the complaint ratio. This figure shows the number of complaints each insurer has received relative to the amount of business it does in the state (generally based on the amount of premiums it collected for the year). If you were to simply look at complaint totals, you'd probably see that larger companies receive more complaints than a smaller companies. This doesn't necessarily mean that large companies are less customer-friendly, only that they deal with a lot more people. If you compare complaint ratios, you may see that the larger companies, on average, have fewer complaints than their smaller competitors. The complaint statistics are generally divided by type of business, with separate numbers for homeowners and auto policies, for example.

To check out the insurer's track record on a national level, go to the National Association of Insurance Commissioners' Consumer Information Source, which also lists complaint ratios and shows how each insurer's record compares to the national average.

If the company you're considering has a complaint ratio that is much worse than average, it might be worthwhile to take your business elsewhere even if it costs you a little extra. Saving a few dollars in premiums can backfire if the insurer hassles you when you file a claim. See Smart Shopper's Guide to Auto Insurance for more information on finding the best deal.