News

State’s ranking of automobile insurers is a valuable tool for auto owners

Posted: December 05, 2011

Buffalo, NY -- This week the New York State Insurance Department issued a list of the worst and best auto insurance companies in the state. This list, available to the public at: www.dfs.ny.gov under the title: 2011 Annual Ranking of Automobile Insurance Companies , is based on the number of complaints to the Insurance Department that were determined to be valid, divided by the dollar amount of the total premiums written by the insurers.

“This ranking, produced by the New York State Department of Financial Services, is a valuable tool for every automobile owner in this state,” said Jeffrey Freedman, senior partner, Jeffrey Freedman Attorneys at Law. “Most consumers don’t realize that the purchase of automobile insurance is a major purchase -- often in excess of $1,000 per year -- and they should research that purchase just as carefully as they would a new TV or car.”

Christopher Kerr, attorney handling personal injury cases at the Freedman firm, says not all insurance companies are created equal, and low cost is not always the best choice.

“Something has to be sacrificed and it is typically customer service and coverage,” he said. “A customer can be loyal to a company for many years until he or she has a claim, when they discover the insurer is very difficult to deal with and the agent they bought the policy from has no influence on the outcome of their claim.”

Consumers should remember that the insurance agent is just a salesperson for the company, who often has a vested interest in selling particular coverages. Even in companies that don’t sell through through agents, the claims department is completely separate from the sales department, and its service may not compare to the service the client receives when he or she is purchasing the policy.

“When an insured has been treated badly during the claims process, they often call us, saying `I am not the kind of person who sues, but look at the way I’ve been treated,’ ” Freedman said. “They are very frustrated with their insurer’s customer service and the fact they don’t have the coverage they thought they had.”

During the first appointment clients have with the Personal Injury department at Jeffrey Freedman Attorneys at Law, the attorney asks them to bring the declarations page from their insurance policy to determine what is actually covered.

“Many people are surprised and disappointed by what that declarations page says,” Kerr said. “You don’t necessarily have to pay a lot to get the coverage you need or good customer service in the event of a claim and most people find it is well worth the extra money.”

The Annual Ranking is a valuable public service provided by the state that should be accessed by any consumer of automobile insurance who wants to be well-informed about the purchase they are making, Freedman said.

« Return to all news