Do you have insurance? Maybe you have just started a new job and now the renewal cost is much higher than you expected. You might feel cheated or trapped with a provider that doesn’t suit your needs
If you’re looking for car insurance in 2025, it’s key to know which companies to avoid. I will share my experiences and insights to guide you. So, let’s explore the companies to steer clear of in 2025 and offer some tips for better choices. Let’s get started!!
Insurance Companies to Avoid in 2025: Understanding the Risks
Picking the right insurance provider can be tough. Based on claims, pricing, and customer feedback, here are companies to avoid in 2025
Kemper
Kemper has recently faced bad publicity. The 2022 J.D. Power rankings named it the worst for claims. Typically, you see an insurer’s true quality when filing a claim. Many customers reported waiting over 90 days for payouts, often without any updates
| Aspect | Details |
| Claims Ratings | Worst-rated (J.D. Power 2022) |
| Claim Response Time | 90+ days with no response |
| Business Model Changes | Phasing out preferred business in most states |
Kemper is also pulling back from the market in many areas, making it a less reliable choice
Allstate
Allstate once had a great reputation. However in recent years, rates have jumped by 40% to 50% in some states. They still offer good home insurance in certain areas, but their car insurance has become less competitive
| Aspect | Details |
| Rate Increases | 40-50% in some states |
| Coverage Changes | Reduced base policy inclusions |
| Strengths | Good for home insurance in some states |
If you are considering Allstate, work with an independent agent. They can compare multiple providers for you.
USAA
USAA, once a top choice for veterans and military families, has lost its status. Though still decent, its service and discounts have dropped significantly. Now, veterans face higher rates and fewer benefits than before
| Aspect | Details |
| Target Audience | Veterans and military families |
| Service Quality | Declined from top-tier to average |
| Discount Availability | Limited to base-related benefits |
Although USAA isn’t the worst, it’s disappointing to see how much they’ve declined.
Liberty Mutual
Liberty Mutual is transitioning many sales agents to the Comparion model. This has caused service quality to vary. Now, agents can sell policies from competitors such as Nationwide and Progressive. At the same time, Liberty’s rates have been steadily rising
| Aspect | Details |
| Agent Model | Shifted to Comparion |
| Rate Trends | Increasing steadily |
| Policy Quality | Inconsistent due to multiple providers |
Customers may struggle to get reliable service and low rates after Liberty’s corporate shake-up
AAA
AAA’s old systems and practices make it less appealing. Its membership model has benefits, but the limitations often outweigh the costs. For instance, the payment plans and agent training are outdated.
| Aspect | Details |
| Payment Options | Limited flexibility |
| Agent Training | Outdated methods |
| Membership Requirements | Mandatory for policies |
Geico and Progressive
Geico and Progressive focus on low prices, often at the cost of quality. Their “Name Your Price” tool and basic coverage seem attractive. However, they often leave customers underinsured and vulnerable in accidents
| Aspect | Details |
| Pricing Model | Low-cost, basic coverage |
| Customer Issues | Underinsurance, limited options |
| Online Tools | Basic recommendations only |
Suggestions for Finding Reliable Insurance
If you’re frustrated with these options, here are some tips to find better insurers –
- Work with Independent Agents – They can shop multiple companies and find the best rates for your needs.
- Check Customer Reviews – Look for real feedback on claims experiences and service quality.
- Avoid Price-Only Focus – Cheap isn’t always better. Ensure your policy provides adequate coverage.
- Ask About Discounts – Many companies offer hidden discounts for bundling policies or maintaining good driving records.
- Verify Financial Stability – Use resources like AM Best to check an insurer’s financial health.
| Suggestion | Details |
| Work with Agents | Compare multiple providers |
| Focus on Coverage | Avoid cheap, inadequate policies |
| Research Financial Health | Check AM Best ratings |
FAQs
What are the main issues with Kemper insurance?
Kemper has issues with slow claim processing and poor customer service. Its market presence is declining in many states
Is USAA still a good choice for veterans?
USAA has decent options. But its service and discounts have declined from its earlier reputation
Why are Geico and Progressive not recommended?
These companies focus on low-cost models. This often results in underinsured policies and limited coverage options
How can I find better insurance providers?
Work with independent agents, research reviews, and prioritize comprehensive coverage over low prices
Conclusion
In 2025, pick car insurance carefully. Avoid Kemper, Allstate, and Liberty Mutual if they don’t fit your needs. Research and compare options. Always prioritise quality over cost
If you have questions or need help, please refer to the contact us page. Also share this post and subscribe for updates
Melanie Lopez is a passionate content specialist at American National Car Insurance, dedicated to simplifying car insurance for every American driver. With years of industry expertise, she crafts informative and engaging articles to help users make confident insurance decisions.