Volume 8, Issue 5 - September/October 2006

Which Insurers Rate Best?
AGRR readers rate the insurance companies

AGRR magazine surveyed its readers, asking them a variety of questions about the various insurance companies with which they work.
Subscribers were asked to rate the most prominent insurance companies involved in the auto glass market on a number of factors involved in the working relationships between the AGRR shops and the insurers. The insurance companies included in the survey were: Allstate, Amica, Farmers, GEICO, Liberty Mutual, Nationwide, Progressive, State Auto, State Farm and USAA. There was also a category for “Others” so that readers who deal with other, probably more local or regional, insurers could respond for those not named in the list.

Here’s what we found.*

*In some cases figures do not add up to exactly 100% because of rounding numbers up or down.

What percent of your work is with the following companies?

  0-10% 11-20% 21-30% 31-40% 41-50% 51-75% 76-90% 90%+
Allstate 40 40 4 8 4 4 0 0
Amica 100 0 0 0 0 0 0 0
Farmers 62 29 5 0 0 4 0 0
GEICO 94 6 0 0 0 0 0 0
Liberty Mutual 89 11 0 0 0 0 0 0
Nationwide 89 11 0 0 0 0 0 0
Progressive 83 17 0 0 0 0 0 0
State Auto 92 8 0 0 0 0 0 0
State Farm 4 27 19 11 27 8 4 0
USAA 90 10 0 0 0 0 0 0
Others 45 13 9 23 8 0 7 0

The Big Easy
Survey respondents reported that insurance customers make up 56.7 percent of their auto glass work. The range was from 20 percent to 99 percent.

Asking what percent of work they do for the various companies, the size of the insurance company becomes clear. State Farm and Allstate clearly stand out as companies for which a significant percentage of work is done.

In looking at the overall results, it becomes clear that the two companies are also the leaders in most categories. They rate highest in terms of being easy to work with, as does Other, probably reflecting the close working relationship between these smaller insurers and the AGRR companies.

How easy is the insurance company to work with overall?

State Farm            

3.83

 
Allstate             3.68  
Amica         2.71      
USAA         2.63      
Liberty Mutual         2.58      
Farmers        

2.54

     
Nationwide       2.47        
GEICO       2.34        
State Auto       2.21        
Progressive    

1.91

         
Others          

3.22

   
  0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0

How easy is it to work with the insurance company’s third-party administrator?

State Farm           3.29    
Allstate             3.62  
Amica       2.27 2.71      
USAA       2.47 2.63      
Liberty Mutual       2.44 2.58      
Farmers       2.25 2.54      
Nationwide       2.41        
GEICO       2.24        
State Auto       2.13        
Progressive       2.04        
Others         2.84      
  0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0

How easy is it to get approval for a job?

State Farm             3.64  
Allstate             3.92  
Amica         2.84      
USAA         2.65      
Liberty Mutual         2.75      
Farmers         2.76      
Nationwide         2.59      
GEICO         2.60      
State Auto       2.41        
Progressive       2.26        
Others             3.50  
  0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0

Coming Up Short
The practice of short payment is one of the most contentious issues between the AGRR industry and insurance companies. According to survey responses, it is a significant matter. The average amounts respondents reported they estimated they were short paid are significant numbers.

However, the percent of times that the insurance company short pays is at the low end of the scale. All the insurance companies came in with the majority of short pays at less than 10 percent of the time.

How knowledgeable are the insurance company’s agents?

State Farm           3.30  
Allstate           3.04  
Amica         2.91    
USAA         2.52    
Liberty Mutual       2.30 2.58    
Farmers         2.70    
Nationwide         2.50    
GEICO       2.22      
State Auto         2.54    
Progressive       2.23      
Others         2.93    
  0.5 1.0 1.5 2.0 2.5 3.0 3.5

What is the average amount of short pay?

State Farm     $109    
Allstate   $97.75      
Amica     $132.50    
USAA   $71.25      
Liberty Mutual   $70.40      
Farmers     $148.33    
Nationwide     $113    
GEICO   $71.40      
State Auto       $182.50  
Progressive     $116.50    
Others $17        
  0 50 100 150 200

Survey Respondent Snapshot

How many employees do you have?
1-5 55%
6-10 20%
11-25 4%
More than 25 24%

How many years has your company been in business?
1-5 25%
6-10 12%
11-25 25%
More than 25 37%

How many locations does your company have?
1 62%
2 2%
3-5 8%
More than 5 21%

How many locations does your company have?
Under $100,000 9%
$100,000-$500,000 43%
$500,000-$1 million 22%
Over $1 million 26%

What percent of the time does the insurance company short pay?

  0-10% 11-20% 21-30% 31-40% 41-50% 51-75% 76-90% 90%+
Allstate 84 10 0 0 0 0 0 5
Amica 86 0 7 0 0 0 0 7
Farmers 62 6 6 6 7 0 0 13
GEICO 75 4 5 5 4 0 0 11
Liberty Mutual 75 5 4 0 4 5 0 11
Nationwide 11 1 1 2 1 0 0 2
Progressive 59 0 0 11 6 0 0 18
State Auto 83 0 0 9 0 0 0 8
State Farm 79 16 0 0 0 0 0 5
USAA 66 0 7 0 7 0 0 20
Others 84 5 5 0 0 0 0 5

How easy is it to resolve an issue with the insurance company?

State Farm           3.19  
Allstate         2.91    
Amica   1.42          
USAA       2.35      
Liberty Mutual       2.28 2.58    
Farmers       2.34      
Nationwide       2.26      
GEICO       2.29      
State Auto       2.35      
Progressive       2.08      
Others         2.94    
  0.5 1.0 1.5 2.0 2.5 3.0 3.5

How do you rate the insurance company’s fair and reasonable payment schedule?

State Farm         2.88  
Allstate       2.42    
Amica         2.64  
USAA       2.31    
Liberty Mutual       2.40 2.58  
Farmers       2.26    
Nationwide       2.21    
GEICO       2.00    
State Auto       2.14    
Progressive     1.79      
Others         2.60  
  0.5 1.0 1.5 2.0 2.5 3.0

Poor O&As
Another contentious issue between AGRR companies and the insurance industry is the offer and acceptance 
programs. This aspect got the lowest ratings in the survey.

How do you rate the insurance company’s fair and reasonable payment schedule?

State Farm         2.64  
Allstate       2.15    
Amica     1.92      
USAA     1.90      
Liberty Mutual       2.16 2.58  
Farmers       2.09    
Nationwide     1.95      
GEICO       2.13    
State Auto     1.66      
Progressive     1.54      
Others       2.33    
  0.5 1.0 1.5 2.0 2.5 3.0

What percent of the time does the insurance company short pay?

  Less than 5 Min. (%) 6-10 Min. (%) 11-20 Min. (%) More than 20 Min. (%)
Allstate 66 25 5 5
Amica 38 31 23 8
Farmers 9 55 27 9
GEICO 22 21 39 18
Liberty Mutual 18 37 33 12
Nationwide 9 35 43 14
Progressive 4 34 30 30
State Auto 9 36 36 18
State Farm 54 37 0 8
USAA 26 32 26 16
Others 24 35 18 24

Overall, how do you rate the fairness of the insurance company?

State Farm         2.84  
Allstate         2.64  
Amica       2.46    
USAA       2.15    
Liberty Mutual       2.08 2.58  
Farmers       2.09    
Nationwide       2.00    
GEICO       2.04    
State Auto       2.00    
Progressive     1.65      
Others         2.65  
  0.5 1.0 1.5 2.0 2.5 3.0

What percent of the work you do for the insurance company is repair?*

  0-10% 11-20% 21-30% 31-40% 41-50% >50%
Allstate 46 45 19 4 4 11
Amica 71 7 7 7 0 7
Farmers 58 8 17 0 4 13
GEICO 61 17 9 0 9 4
Liberty Mutual 65 17 9 0 4 4
Nationwide 57 17 17 0 0 9
Progressive 54 17 13 4 0 12
State Auto 64 7 14 0 0 14
State Farm 46 27 8 8 0 11
USAA 60 10 15 0 10 5
Others 42 26 16 0 5 11

*The survey mailing list included companies that do repair only as well as companies that do both repair and replacement and replacement only.

What is the average number of working days it takes to be paid for work from the day that the work is billed?*

  1-5 days 6-10 days 11-20 days 21-30 days 31-60 days 61-90 days >90 days
Allstate 0 8 38 29 21 4 0
Amica 0 21 14 21 36 7 0
Farmers 0 5 19 29 43 5 0
GEICO 0 0 14 33 48 5 0
Liberty Mutual 0 9 13 30 43 4 0
Nationwide 0 9 9 18 59 5 0
Progressive 0 4 13 30 48 4 0
State Auto 0 14 14 21 43 7 0
State Farm 0 12 33 33 17 4 0
USAA 0 5 16 21 53 5 0
Others 0 6 11 37 38 6 0

*Figures represent the average percent of respondents who answered for each insurance company, but the total may not add up to 100% because of rounding off (i.e., 8% of Allstate respondents reported 6-10 days).

What percent of your payments is electronic?

  0-10% 11-20% 21-30% 31-40% 41-50% 51-75% 76-90% 90%+
Allstate 45 0 0 0 0 0 0 55
Amica 66 0 0 0 0 0 8 26
Farmers 61 0 0 0 0 0 0 39
GEICO 75 0 0 0 0 0 3 22
Liberty Mutual 75 0 0 0 0 0 0 25
Nationwide 62 0 0 0 0 0 0 38
Progressive 60 0 0 0 0 0 0 40
State Auto 50 0 0 0 0 0 0 50
State Farm 45 0 0 0 0 0 0 55
USAA 59 0 0 0 0 0 0 41
Others 60 0 20 0 0 0 0 20

AGRR
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