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Why is this important? Two words: Bad faith. If a carrier would rather pay their attorneys than claimants, it doesn't matter who cheap the premium is. You have a much greater chance of being a victim of bad faith than your insurance carrier going out of business, leaving you (temporarily) without auto insurance.

This goes beyond ratings, that are near useless, a conflict of interest for the carrier that bought them, and is no indication of how the carrier will treat you. In fact, an insurer that mistreats their customers or lowballs them might even have better ratings. How companies like that stay in business? There are large carriers out there with powerful brands, die hard customer loyalty and huge margins that can afford to lose a few claimants.

• Contact the local body shops of dealerships and find out which carriers beat them up or low ball them on repairs.
  
  Pros: You can find out which companies try and get the shop to user after market or off brand parts. Also which ones have the lowest pay outs.
  
  Cons: An certain investment in time. Also you have to make sure you talk to the person at the body shop that does the billing. It can't be done on the net
• Use an independent agent, a member of the Independent Insurance Agents of America or PIA (Professional Insurance Agents).
  
  Pros: He'll know who pays claims without a knockdown drag out fight. Unlike the adjuster who beats you up, the agent wants to keep you as a client. You can also change carriers without changing your agent.
  
  Cons: You might get pressured to buy a policy, especially one that pays the biggest commission Independent agents may also charge a brokerage fee for their services



• Only use carriers that don't have an arbitration clause (waiving your right to sue), or one that will let you cross out that line in the policy
  
  Pros: You will know whose interest the company has in mind when you find these types of clauses.
  
  Cons: Many carriers nowadays have this clause and it may really reduce your choices (not really a bad thing). Also deleting the arbitration clause or waiver may void the policy.



• Use J.D. Power auto insurance ratings. Their surveys include rating an insurer based on the value of services offered; the ability of the provider to fulfill commitments; the ease of working with the insurer; claims; billing practices; how well company personnel and agents treat consumers; price; and problem resolution.
  
  Pros: Numerical scores based on perceived quality by consumers.
  
  Cons: Based on customers perception. For example, if ratings across the board go up, a good carrier may have an unsatisfactory rating.



• Check out your State Department of Insurance complaint ratios.
  
  Pros: It will give you a broader view or insurers insurer conduct, and how they compare to their peers.
  
  Cons: Once consumers contact an attorney for representation, most State's will not assist you with a claim. So these ratios may illustrate the worst cases of abuse be carriers.