Is Auto-Owners a Good Car Insurance Company?

Last Updated on July 20, 2023

If you are on the prowl for new auto insurance, Auto-Owners Insurance is worth consideration. Auto-Owners provides affordable insurance from a trustworthy group with some unexpected benefits.  If you are looking for direct, one-on-one interactions with a friendly agent at your convenience, you will find it with Auto-Owners Insurance.  The company also provides a TrueRide safe driving app that will help you save money on your monthly premium. Let’s take a closer look at whether you should do business with Auto-Owners Insurance.

Key Takeaways:

1. Affordable Auto Insurance with Personalized Service: Auto-Owners Insurance provides affordable rates to drivers with good driving history. Its customer service is personalized, with one-on-one interactions with friendly agents. It also provides a TrueRide safe driving app, which can help you save money on monthly premiums if you prove to be a safe driver.
2. Old-fashioned Auto Insurer: Auto-Owners Insurance is an old-fashioned auto insurer that does not offer online purchase options. However, it is perfect for those who prefer a close relationship with their auto insurer.
3. Competitive Rates: Auto-Owners Insurance offers competitive rates comparable to its competitors. Although the rates may not be the most affordable, the difference is not significant enough to be a deal-breaker.
4. Additional Coverage Options and Benefits: Auto-Owners Insurance provides several additional coverage options, such as gap coverage, diminished value coverage, additional expense insurance, and accident forgiveness. It also offers extra perks and benefits, including waived deductibles, common loss deductibles, and rental car insurance.

Affordable Auto Insurance You Can Count On

Auto-Owners Insurance provides reasonably low rates for those with solid driving records.  As long as you do not have many accidents and tickets, you will likely find this auto insurance quite affordable.  You will certainly enjoy personalized service each time you interact with an Auto-Owners Insurance customer service agent. Though purchasing options are limited to interactions with independent agents, customers enjoy a convenient driver safety rating program accessible by smartphone.  This safety rating program can provide meaningful auto insurance discounts if you prove your merit as a safe driver.

An Old-fashioned Auto Insurer

Auto-Owners Insurance is somewhat of a throwback in the auto insurance industry.  As noted above, drivers must acquire insurance from an independent agent in their local area.  The interactions with the customer service agents will be over the phone instead of on the web. This setup is perfect for those looking to participate in a close relationship with their auto insurer.  This way, if you have pressing questions or have to file a claim, the individual you interact with will know all about your auto insurance policy, who you are, etc.

Few auto insurance providers outrank Auto-Owners Insurance in the customer service category.  However, those who prefer to purchase and manage their auto insurance on the web will likely find other more modern insurers are a better option.  Yet most drivers care more about their monthly premium than anything else.

What Matters Most: the Rates

The auto insurance rates provided by Auto-Owners Insurance are pretty competitive.  Though there is a common misconception working directly with an auto insurance agent will spur a lofty premium, this is not the case with Auto-Owners Insurance. Look at the company’s insurance rates, and you will find they are comparable with competitors.

Auto-Owners Insurance tends to offer rates below the industry average, making it a competitive option for car insurance. Our estimates indicate that drivers typically pay around $1,337 per year or $111 per month for comprehensive car insurance coverage with Auto-Owners. For minimum liability insurance, the average cost with Auto-Owners is around $349 per year or $29 per month.

While Auto-Owners Insurance premiums are generally lower than statewide averages, the difference is typically not significant. While you can expect to find competitive rates with Auto-Owners, it may not always be the most affordable option. In the end, pricing probably won’t be a deal-breaker.

Location, Location, Location

As is often said, location is everything when it comes to real estate and pricing for services. Auto-Owners Insurance was founded over a century ago, yet it does business in only 26 states. If you are thinking about moving to a new state, Auto-Owners Insurance is not ideal for you. This insurance is best for those who plan on staying at their current location for at least the next year.

Auto Insurance Coverage Options

Auto-Owners offers all of the usual coverage types that might be required in your state, including liability coverage, collision coverage, comprehensive coverage, uninsured motorist coverage, and personal injury protection coverage. They also offer some other coverage types that might interest you:

Gap Coverage: Gap coverage pays the difference between the amount owed and the actual value of the car, which can be very useful if you total your vehicle shortly after purchasing it.

Diminished Value Coverage: Diminished value coverage is similar to gap insurance, but it comes into play when your car is damaged rather than stolen or totaled. This optional coverage compensates you for the reduced value of your car.

Additional Expenses Insurance: Additional expenses insurance, also known as emergency travel expenses coverage, offers additional benefits that a rental car policy does not typically offer. If your car is in the shop for a covered claim, this insurance add-on not only pays for a rental car but also covers expenses such as food, lodging, and other incidentals if you’re stranded.

Accident Forgiveness: If you’re a safe driver with no at-fault claims or major traffic violations in the past 36 months, you might be eligible for accident forgiveness through Auto-Owners. This feature forgives your first at-fault accident, so you won’t have to worry about rising insurance rates after a crash.

Extra Perks and Benefits

Auto-Owners offers several advantages and perks to their policyholders:

Waived Deductibles: If you are involved in an accident with another Auto-Owners customer, the company will waive your collision deductible. Additionally, if you collide with an animal, Auto-Owners will cover the damage either through collision or comprehensive coverage, whichever benefits the policyholder more.

Common Loss Deductible: Auto-Owners also has a common loss deductible feature. If your home and car are damaged in the same incident, and Auto-Owners covers them, the company will reduce your deductible. If your auto deductible is lower than your personal property deductible, you won’t have to pay your auto deductible. If your auto deductible is higher than your personal property deductible, Auto-Owners will subtract the cost of your personal property deductible from your auto deductible, so you only pay the remainder.

Rental Car Insurance: If you get into an accident while driving a rental car, your coverage limits for your own car will apply. Auto-Owners also covers any charges or fees from the rental company, so you won’t have to worry about additional expenses.

Auto Insurance Discounts

Auto-Owners Insurance provides drivers with a decent number of discounts.  However, many of these discounts depend on bundling several policies, paying the bill on time or early, engaging in safe driving habits, etc.  Though Auto-Owners Insurance does not have any incredibly unique discounts, its special offers/rates will certainly help lower your monthly premium. For example, you can save a bundle on auto insurance if you bundle multiple policies through the company, including home and life insurance.  There is also a discount for insuring several vehicles on one policy. The company even offers pet insurance. Couple pet and car insurance, and you might snag an excellent deal.

Additional discounts are available to those who pay early or on time for 36 consecutive months, those who have vehicles with the latest safety features, and those who opt for paperless billing.  Even teen drivers enjoy a discount. The company’s good student discount for installing a GPS device in the vehicle mainly driven by a teen qualifies him or her for the discount. A monthly premium reduction is also available if the teen driver’s school is far from home.  The moral of this story is Auto-Owners Insurance makes driving much more affordable for countless drivers. Comply with the company’s requirements for discount eligibility, and you will likely find your monthly auto insurance premium is surprisingly affordable.

Customer Satisfaction

Auto-Owners is proud to have earned the highest financial strength rating, A++ (Superior), from AM Best, which reflects its strong financial standing and capacity to handle numerous claims concurrently. However, the company’s customer satisfaction ratings in the 2022 J.D. Power U.S. Auto Insurance Study fall below the industry average in three of the four regions evaluated. Nevertheless, Auto-Owners received the second-highest ranking in the Southeast region, and clients in that area may find the company’s offerings attractive. Nonetheless, it is critical to consider the company’s level of service carefully before deciding, given its below-average ratings for claims satisfaction in the 2022 J.D. Power U.S. Auto Claims Satisfaction Study.

The NAIC complaint data indicates that Auto-Owners has consistently received fewer complaints than expected for its size, with a complaint index of 0.66 for its personal auto insurance product. This suggests that the company has received fewer complaints than the NAIC’s baseline average. These findings contrast with those of the J.D. Power survey, underscoring the importance of speaking with current policyholders to obtain a complete understanding of Auto-Owners’ services before committing to them.

The Pros of Auto-Owners Insurance

Here are the positive aspects of Auto-Owners Insurance:

• Wide coverage offerings with many opportunities to bundle for discounts
• Fewer complaints than average for auto insurance
• Strong financial ratings from AM Best, indicating an ability to handle claims
• Relatively affordable car insurance rates
• Claims processing receives high marks from customers
• Extensive amount of discounts offered

The Downside to Auto-Owners Insurance

For all the good with Auto-Owners Insurance, there are some cons:

• The company’s coverage does not extend to the entirety of the country.
• Auto-Owners Insurance customers cannot easily purchase and manage their coverage on the web.
• Auto-Owners’ coverage is exclusively available through independent agents. You cannot directly purchase coverage from the company. Instead, you have to interact with an independent agent in your area.
• While claims do get processed, there have been many complaints about the company’s claim processing time.
• If you have a DUI or a poor driving record, you will want to look elsewhere, as Auto-Owners does not offer affordable rates to high-risk drivers.
• The cost of adding a teen driver to your policy can be high.
• Auto-Owners does not offer SR-22 insurance.

Auto-Owners Contact Information

If you’d like to learn more, don’t hesitate to get in touch with Auto-Owners using the following methods:

Address:
6101 Anacapri Blvd.
Lansing, MI 48917

Phone number: 800-346-0346

Website: https://www.auto-owners.com/

Email: https://www.auto-owners.com/about/contact-us