Consumer experience ratings evaluate how easy it is to interact with an insurance company, including getting quotes, accessing customer support, and filing and tracking claims. This part of our rating also includes data on complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2022-2024.
To assess how insurers compare to one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC. Ratios are determined separately for auto, home (including renters and condo) and life insurance.
Bonus points are available for customer-friendly features such as a 24/7 claims phone line.
Coverage ratings evaluate each company’s personal property coverage (replacement cost vs. actual cash value) and how many common policy endorsements are available.
Bonus points are available for companies that include unique types of coverage, such as flood or identity theft, in their standard renters policies.
Affordability ratings are based on how many potential discounts an insurance company offers its policyholders. Where data was available, we also incorporated sample rates from Quadrant Information Services. NerdWallet calculated the median rate for 30-year-old tenants in every ZIP code across all 50 states and Washington, D.C. Sample tenants were nonsmokers with good credit and no recent claims, living in a two-bedroom apartment. They had a $500 deductible and the following coverage limits:
• $30,000 in personal property coverage.
• $100,000 in liability coverage.
• $10,000 in additional living expenses coverage.
• $1,000 in medical payments coverage.
We made minor changes to the sample policy in cases where rates for the above coverage limits or deductibles weren’t available.
We then compared the insurer's median rates to the median rates for other companies.
Financial strength ratings, which indicate an insurer’s ability to pay future claims, are based on assessments from independent agencies such as AM Best and Demotech.