The Shit List: Exposing America's Worst Car Insurance Companies
In the intricate world of car insurance, consumers often find themselves navigating a maze of policies, premiums, and promises. However, not all insurers uphold the standards they advertise. In this inaugural article of "The Shit List," we delve into the car insurance industry to spotlight the companies that have consistently fallen short in serving their customers. At the pinnacle of this list stands GEICO, accompanied by other notable underperformers.
1. GEICO: The Gecko's Tarnished Reputation
GEICO, once celebrated for its catchy advertisements and competitive rates, has recently been under scrutiny for a series of shortcomings:
Customer Complaints: The Better Business Bureau (BBB) has recorded numerous grievances against GEICO, highlighting issues ranging from billing discrepancies to inadequate customer service. Read complaints on BBB.
Data Breaches: In a significant lapse, GEICO was fined $9.75 million by New York State due to cybersecurity failures that exposed sensitive information of approximately 120,000 individuals during the COVID-19 pandemic. Full story on WSJ.
Negative Reviews: Platforms like Yelp showcase a plethora of negative reviews, with customers expressing dissatisfaction over claim denials and unresponsive support. See Yelp reviews.
2. Liberty Mutual: Liberty at a Cost
Liberty Mutual has faced criticism for its handling of claims and customer satisfaction:
Claim Denials: The company has been spotlighted among the worst insurers for denying claims, often leaving policyholders in challenging situations. More on Colorado Law.
Customer Feedback: Numerous policyholders have reported dissatisfaction with Liberty Mutual's services, citing prolonged claim processes and inadequate settlements.
3. Allstate: You're Not in Good Hands
Allstate's slogan promises reliability, but consumer experiences suggest otherwise:
Data Privacy Concerns: The company faced a lawsuit from the state of Texas for allegedly collecting driver data without consent, raising significant privacy issues. Read more on Reuters.
Customer Complaints: Allstate has been ranked among the worst insurers due to numerous complaints about claim handling and customer service. See report on TeamJustice.
4. Farmers Insurance: Sowing Seeds of Discontent
Farmers Insurance has been criticized for its approach to claims and customer relations:
Customer Satisfaction: The company consistently ranks low in customer satisfaction surveys, with policyholders highlighting issues in claim resolutions. More details on Caruso Law.
Legal Troubles: Farmers' parent company, Zurich Financial Services, has paid out significant sums to settle cases related to bid-rigging and price-fixing, reflecting poorly on its ethical standards.
5. State Farm: A Farm of Disputes
Despite its longstanding presence in the industry, State Farm has encountered several controversies:
Settlement Issues: The company agreed to a $2.09 million settlement for underpaying car owners by excluding "diminished value" payments from claims, affecting numerous policyholders. Read more on The Sun.
Customer Feedback: Policyholders have reported challenges with State Farm's claim processes, citing delays and inadequate settlements.
6. Progressive: Not So Progressive After All
While Progressive markets itself as a modern, customer-friendly insurer, the reality is more complicated:
Claim Handling Issues: Customers frequently report lowball settlements and unfair claim denials, making it one of the least trustworthy insurers. Check out reports on ExpertInsuranceReviews.
Lawsuits & Legal Trouble: Progressive has faced lawsuits for allegedly delaying payments to policyholders and using deceptive tactics.
7. USAA: Military Members Deserve Better
USAA, which caters to military families, has earned a reputation for disappointing its loyal customer base:
Claim Delays & Poor Customer Service: Military families rely on stability, yet many have reported long wait times for claims and poor service when dealing with USAA. Read more on ConsumerAffairs.
Coverage Issues: Customers have also noted that USAA policies often don’t cover as much as expected, leaving them with surprise costs.
8. Nationwide: Not Actually on Your Side
Nationwide’s catchy slogan doesn’t match its service record:
High Rates, Low Satisfaction: Customers complain about skyrocketing premiums with no justification, even for drivers with clean records. Read Nationwide complaints on BBB.
Poor Claim Response: Policyholders have reported delayed and denied claims, even in cases where the policy should have covered damages.
9. The Hartford: Senior Citizens Beware
Marketed as a senior-friendly insurer, The Hartford has instead been the source of frustration for many older customers:
Misleading Policies: Many seniors report that they were promised one rate but were charged much higher premiums after signing up.
Difficult Claims Process: Policyholders have experienced slow responses and denied claims despite clear policy coverage.
How to Protect Yourself from Bad Insurance Companies
Car insurance isn’t just about picking the cheapest policy—it’s about ensuring you’ll actually be covered when you need it. The companies on this list have repeatedly failed their customers with delayed claims, surprise premium hikes, and outright denials. Unfortunately, the American Insurance Consumer Protection (AICP)—the supposed watchdog for consumer rights—is practically useless. It’s often too cozy with the industry it’s supposed to regulate, doing little to hold insurers accountable. That means it’s up to you, the consumer, to protect yourself.
Here’s how you can avoid becoming a victim of insurance company tricks and loopholes:
Life Hacks to Outsmart Bad Insurance Companies
1. Always Record Calls and Save Everything
Every conversation with your insurer should be documented.
Many states allow one-party consent recording (meaning if you’re in the call, you can record it legally).
Keep email confirmations, claim numbers, and adjuster names—you’ll need them if they try to gaslight you.
2. Never Accept the First Offer on a Claim
Insurance companies lowball you on purpose, betting that you’ll take the first payout.
Negotiate like you would with a used car salesman.
Use independent repair estimates and consumer protection laws to push for what you're actually owed.
3. Threaten to File a Complaint—But Know Where to Do It
The Better Business Bureau (BBB) and AICP? Waste of time.
Instead, file complaints with your state’s Department of Insurance, which can actually apply pressure.
Use public forums like Twitter and Reddit—bad PR forces companies to respond faster.
4. Check for Class-Action Lawsuits Against Your Insurer
Companies like State Farm, Allstate, and GEICO have been sued countless times for shady practices.
Check sites like TopClassActions.com to see if there’s a case you can join.
5. Get a Lawyer for Any Major Claim
If your claim is over $5,000, don’t fight alone.
Many consumer lawyers offer free consultations, and some work on contingency (meaning you don’t pay unless they win).
A simple “Let me check with my lawyer” can change an insurance adjuster’s tone real quick.
6. Consider Switching to Smaller, Highly Rated Insurers
Big-name insurers are often the worst offenders.
Instead, check consumer-driven rankings like J.D. Power, AM Best, and NerdWallet to find smaller insurers with better reviews.
Look for mutual insurance companies (owned by policyholders), which have less incentive to screw you over.
You’re On Your Own, So Be Smart
Insurance companies exist to make money—not to help you. The system is stacked against consumers, and government oversight is weak at best. That means you have to be proactive, persistent, and prepared.
Do your research before choosing a policy.
Fight for every dollar if you ever need to make a claim.
Expose bad behavior publicly when necessary.
The companies on this list aren’t just bad—they’re predatory. But if you stay informed, document everything, and refuse to be bullied, you can protect yourself from becoming their next victim.
How to Choose the Right Car Insurance (and Avoid Getting Screwed)
Finding a reliable car insurance company isn’t just about price—it’s about making sure they actually pay out when you need them. Here’s how to spot the good ones and avoid the scams.
What to Look for in a Good Insurance Company
1. Strong Financial Stability
If a company isn’t financially stable, they won’t have the money to pay your claim when disaster strikes.
Check their AM Best Rating (AMBest.com)—A or higher is what you want.
Avoid companies with a B rating or lower—they’re struggling.
2. High Customer Satisfaction Ratings
Insurance companies love to talk about how great they are—but customers tell the real story.
Check independent consumer satisfaction ratings on:
A pattern of complaints about claim denials or customer service delays? Run.
3. Transparent Policies and Coverage
Read the fine print before signing anything.
Look for policies that explicitly state they cover:
OEM parts (original manufacturer parts, not cheap knock-offs)
Diminished value (your car losing resale value after an accident)
Rental reimbursement (so you’re not stranded if your car is in the shop)
4. Low Complaint Ratios with State Regulators
Every insurance company has complaints, but some have way more than others.
Check your state’s Department of Insurance website for their complaint index.
If a company has a high complaint ratio, that means they routinely deny claims.
5. Strong Digital and Customer Service Support
A good insurance company should be easy to reach when you need them.
Look for:
24/7 claims assistance
A mobile app for submitting claims
Live chat support (not just a chatbot)
Red Flags: How to Spot a Bad Insurance Company
1. They Advertise “Too Good to Be True” Rates
If an insurer is offering super low premiums, there’s a catch.
Many jack up your rates after the first 6 months with no warning.
Some lure customers in with cheap coverage but deny almost every claim.
2. They Have a History of Lawsuits and Scandals
Some insurers are repeat offenders when it comes to fraud, data breaches, and unfair claim denials.
A quick Google search for “[Company Name] lawsuit” can reveal if they’ve been sued for shady practices.
3. They Push You to Accept a Lowball Settlement
A company that immediately pressures you to accept a quick, low payout is hiding something.
They know you’re entitled to more but hope you’ll take less to avoid a fight.
4. Unexplained Rate Hikes
Some companies increase your premiums for no reason—even if you have a perfect driving record.
Always ask for a detailed explanation of any rate increase.
5. Slow or Nonexistent Customer Service
If you can’t get through to an actual human when you need help, that’s a bad sign.
Call the company before you sign up and test their response times.
Bonus Tip: Consider an Independent Insurance Agent
Independent agents aren’t tied to one company and can shop around for the best policy for you.
Unlike direct insurers, they work for you, not the insurance company.
Final Thought: Knowledge is Power
The biggest mistake you can make with car insurance is choosing blindly. The worst insurers bank on consumer ignorance to trap people in terrible policies.
By following these tips, you’ll avoid:
✅ Getting scammed with lowball payouts
✅ Being stuck with a company that never answers the phone
✅ Overpaying for coverage you don’t need
Choosing the right insurance company means peace of mind, not just a low premium. Stay informed, read reviews, and don’t be afraid to walk away from a bad deal.
