Ratings Methodology for Auto Insurance Company Reviews

At Policygenius, we analyze auto insurance companies based on five key factors.

Haley Sprankle

By 

Haley Sprankle

Haley Sprankle

Reviews Editor

Haley Sprankle is a former reviews editor at Policygenius who specializes in homeowners and auto insurance. Previously, she was a writer at Wirecutter and The New York Times.

Published March 3, 2022 | 2 min read

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To create our comprehensive auto insurance company reviews, we focus on a handful of key categories — price, financial confidence, third-party ratings, policy options, and customer experience — and look at several criteria within each. The companies  are rated on these criteria and assigned a score from 1 to 10 for each category. From there, we calculate each company’s overall score, average it on a weighted scale, and assign the overall rating on a scale of 1 to 5.

Here’s how the scoring breaks down.

→ Read our reviews of auto insurance companies

Price 

Average annual premium cost for auto insurance coverage and number of discounts available. 

Pricing is a key consideration for most people shopping for insurance, so it’s one of the most important categories in our scoring. We use the following factors to evaluate companies’ pricing —  and help you get a better sense of what you might pay for your policy:

  • We analyze average premium data provided by Quadrant Information Services and compare that number to the national average premium. This analysis is then converted into a 10-point score, based on the percentage the premium falls above or below the national average.

  • We also aggregate the total amount of discounts, giving companies with more discount opportunities a higher score.

Financial confidence 

Financial scores from major credit rating agencies. 

We use scores from the top credit rating agencies to assess how well an insurance company is doing financially. We assign a numerical value to each letter score, and then average them to get the financial confidence rating. Here are the agencies and each corresponding score range. 

  • A.M. Best (A++ to F)

  • Moody’s (Aaa to Ca or lower)

  • Standard & Poor’s (AAA to CC or lower)

Third-party ratings 

Satisfaction from consumer sentiment institutions and complaints to state insurance boards.

It’s important for us to understand how customers actually interact with each company. We use three trusted agencies to assess customer satisfaction:

  • Consumer Affairs

  • Consumers Advocate

  • National Association of Insurance Commissioners (NAIC)

Policy options 

Both the quality and number of coverage options, like unique auto insurance product features and availability of certain perks and benefits.

One of the most important aspects of an auto insurance company is the coverage available. Having a wide array of options allows for customer customization, and greater protection for your vehicle. Here’s what we consider when rating policy options:

  • How many and what type of coverages are available?

  • How many perks, like accident forgiveness, and which ones are available?

  • How many and what types of insurance does the company offer? 

Customer experience 

Availability, digital tools, points of contact, and payment options.

So much can improve (or worsen) a customer’s experience with an insurance company. We parse through all of the company’s available tools, resources, and interaction opportunities to understand what it’s like to actually work with it. This is what we look for:

  • State availability

  • Digital tools (mobile app, live chat, FAQs)

  • Ease of claims (multiple means of filing via app, phone, or online)

  • Contact options

  • Payment options

Policygenius offers insurance policies from many of the nation's top insurers, which pay us a commission for our services. However, all editorial choices are made independently.