🔑 What You Need to Know
- âś“ The NAIC Complaint Index tracks formal complaints filed against insurers
- âś“ A score of 1.0 = average. Below 1.0 = fewer complaints. Above 1.0 = more complaints.
- ✓ Most comparison sites ignore this data—we don't
- âś“ A cheap policy from a high-complaint company often costs more in the long run
What Is the NAIC Complaint Index?
The National Association of Insurance Commissioners (NAIC) is an organization of state insurance regulators. They collect and publish complaint data for every insurance company operating in the United States.
The Complaint Index (also called Complaint Ratio) compares the number of complaints a company receives to its market share. This levels the playing field—a giant like State Farm will naturally receive more complaints than a small regional insurer simply because they have more customers.
How It's Calculated
The baseline is set so that 1.0 represents the national average. A company with a complaint index of 0.5 receives half as many complaints as expected for its size. A company with 2.0 receives double.
How to Interpret the Complaint Index
Below 0.75 = Excellent
Significantly fewer complaints than expected. These companies generally treat customers well. Examples: USAA (0.51), Nationwide (0.63).
0.75 - 1.0 = Good
Better than average. Generally reliable companies. Examples: GEICO (0.69), Progressive (0.71), State Farm (0.79).
1.0 - 1.5 = Caution
Average to slightly elevated complaints. Not a dealbreaker, but worth investigating further. Examples: Allstate (1.10), Root (1.32).
Above 1.5 = Red Flag
Significantly more complaints than expected. Proceed with extreme caution. Example: Lemonade (10.09—ten times the expected complaints!).
Auto Insurance Complaint Index (2024-2025)
| Company | Complaint Index | Rating | What It Means |
|---|---|---|---|
| USAA | 0.51 | Excellent | Half the expected complaints |
| Nationwide | 0.63 | Excellent | 37% fewer complaints than average |
| GEICO | 0.69 | Good | 31% fewer complaints than average |
| Progressive | 0.71 | Good | 29% fewer complaints than average |
| State Farm | 0.79 | Good | 21% fewer complaints than average |
| Farmers | 0.86 | Good | 14% fewer complaints than average |
| Allstate | 1.10 | Average | 10% more complaints than average |
| Liberty Mutual | 1.15 | Average | 15% more complaints than average |
| Root Insurance | 1.32 | Caution | 32% more complaints than average |
| Lemonade | 10.09 | Red Flag | 10x more complaints than expected! |
Source: NAIC Consumer Information Source. Data updated regularly.
How to Check Complaint Data Yourself
Step-by-Step Guide
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1
Visit the NAIC Consumer Information Source
Go to content.naic.org/cis
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2
Click "Company Search"
Enter the insurer's name and your state
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3
Review the Complaint Ratio
Look for the "Complaint Index" or "Complaint Ratio" in the results
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4
Check Your State Insurance Department
State-specific complaint data may also be available from your state's insurance commissioner
What Do People Complain About?
Understanding the types of complaints helps you know what to watch for:
đźš« Claims Handling (40%)
- • Claim denials
- • Delays in processing
- • Low settlement offers
- • Poor communication
đź’° Premiums & Rates (25%)
- • Unexpected rate increases
- • Billing disputes
- • Refund issues
- • Hidden fees
đź“„ Policy Issues (20%)
- • Cancellation disputes
- • Coverage misrepresentation
- • Non-renewal
- • Underwriting problems
đź“ž Service (15%)
- • Long hold times
- • Unhelpful agents
- • Website/app issues
- • General unresponsiveness
⚠️ Why Most Comparison Sites Ignore Complaint Data
Here's a dirty secret of the insurance comparison industry: many sites rank insurers based on affiliate commissions, not consumer value.
If an insurer pays higher commissions, they get ranked higher—even if their complaint record is terrible. Publishing NAIC complaint data would hurt these rankings, so they simply don't include it.
At SideBySideInsure, we include complaint data in every comparison. A cheap policy from a company that denies claims aggressively will cost you far more in the long run than a slightly pricier policy from a company that treats customers fairly.
Frequently Asked Questions
Is a high complaint index always bad? â–Ľ
Context matters. A newer company with fewer customers might have a higher ratio that's based on just a few complaints. Also, companies that serve high-risk customers (like The General) may have higher complaints simply because of their customer base. But for established insurers, a high ratio is definitely a warning sign.
How recent is the NAIC data? â–Ľ
NAIC data is typically updated annually, with some states reporting quarterly. The complaint ratios usually reflect the prior year's data. While not real-time, it's still the most comprehensive and reliable source of complaint information available.
Should I file a complaint with the NAIC? â–Ľ
The NAIC doesn't handle individual complaints—your state insurance commissioner does. If you have a dispute with your insurer, file a complaint with your state's insurance department. They can investigate and sometimes compel insurers to reconsider decisions.
The Bottom Line
The NAIC Complaint Index is one of the most valuable—and most overlooked—tools for evaluating insurance companies. Before buying any policy, check the complaint ratio. A score above 1.5 should give you serious pause.
Remember: the cheapest policy isn't always the best deal. A company that routinely denies claims, drags out settlements, or treats customers poorly will cost you far more when you actually need to use your insurance.