Is National General Insurance good or bad?

National General Insurance is a mix of strong financial stability and below-average customer satisfaction, making it a fair choice for high-risk drivers or those seeking lower premiums, but a frustrating experience for others.

✅ The Good

• Financial Stability: Holds an A+ (Superior) rating from AM Best, meaning it has a strong capacity to pay out valid claims.
• Competitive Rates: Average 6-month auto policies run around $940, which is lower than the national average.
• Targeted Fit: Well-suited for non-standard drivers, those with infractions, or individuals needing an SR-22.
• Digital Tools: Features an intuitive mobile app and website for basic policy management.

⚠️ The Bad

• Customer Complaints: Carries a high complaint index with the NAIC (significantly more complaints than average for its size).
• Claims Handling: Customer reviews frequently cite slow communication, delayed payouts, and lowball estimates during complex claims.
• Rate Increases: Many policyholders report sharp, unexplained premium hikes after accidents or at renewal.

💡 The Verdict

National General (owned by Allstate) is generally considered good for budget-focused or high-risk drivers who prioritize upfront savings, but bad for customer service and claims support.

National General can offer lower initial rates because it specializes in non-standard underwriting, targets specific driver profiles, and provides automated payment discounts.

Key Reasons for Lower Rates

• Specialty Underwriting: Owned by Allstate, the company focuses heavily on non-standard or high-risk drivers who might struggle to find affordable coverage elsewhere.
• Discounts for Responsible Payers: They lower baseline costs by offering specific price breaks, such as paid-in-full, paperless billing, and autopay enrollment.
• Leaner Coverage Options: Compared to premium legacy competitors, National General features fewer optional add-ons, rideshare coverages, or extensive perks, which helps keep base operational and policy costs streamlined.

The Trade-offs of Cheaper Rates

• Customer Satisfaction: Industry groups and consumer reviews note that lower upfront premiums often come with higher customer complaint indices and a more difficult claims experience.
• Potential Rate Hikes: Drivers frequently report steep premium increases following an accident or driving infraction.

As noted by J J Wright And Associates, looking at how a company handles claims is just as important as saving a few dollars on your monthly bill.

Progressive is generally better for customer satisfaction and digital tools, while National General (an Allstate company) can sometimes offer cheaper rates or niche coverage like RV policies.

Progressive

• Market Position: One of the largest and most stable auto insurers in the U.S. with extensive digital tools and mobile apps.
• Customer Service: Generally scores higher in industry customer satisfaction and has a lower NAIC complaint index than National General.
• Discounts: Offers a wide variety of upfront discounts and bundling options for auto, home, and recreational vehicles.
• Drawbacks: Rates can spike depending on your driving history or location, and some users note mixed claims experiences.

National General

• Market Position: Owned by Allstate, it provides coverage in all 50 states and specializes in standard auto as well as niche policies like RV and motorhome insurance.
• Affordability: Frequently noted by users on Facebook to provide cheaper alternative quotes, especially for drivers with past infractions or full-time RVers.
• Drawbacks: J.D. Power and industry consumer ratings place National General lower for customer and claims satisfaction, with some users reporting frustrating disputes over payouts. Opinions on Reddit and iRV2 Forums are mixed regarding communication during large claims.

There is no single "worst" auto insurance company, but major carriers like Allstate, Liberty Mutual, and Progressive frequently rank poorly in customer satisfaction and claim-handling reviews.

Major Insurers with Frequent Complaints

• Allstate: Often criticized by consumer advocates and attorneys for using strict claim-evaluation software (like Colossus) that can delay or lower payout offers.
• Liberty Mutual: Frequently scores low in consumer satisfaction surveys due to high rates of disputed claims and sudden rate increases.
• Progressive: Regularly cited by customers and repair shops for lowball vehicle damage evaluations and pushing for cheaper or repaired parts over replacements.
• State Farm: While massive in market share, it often lands in lower consumer tiers for aggressive claim-denial strategies.

Budget and Regional Insurers to Watch

• Low-Cost Non-Standard Insurers: Companies like Ocean Harbor, Direct General, and United Auto often rank lowest among personal injury attorneys because they offer very cheap rates but aggressively deny or contest valid claims.
• Bottom-Scoring Regional Brands: In annual satisfaction studies like J.D. Power's Auto Insurance Shopping Study, brands like Safeco and Mercury routinely score at the bottom.

GEICO generally offers lower average rates and a streamlined direct-to-consumer digital experience, while National General (an Allstate company) specializes in specialized coverage options and support through a large network of independent agents.

Key Differences

• Sales Model: GEICO sells policies directly to consumers online or by phone, whereas National General relies on a network of over 55,000 independent agents alongside online options.
• Cost: GEICO frequently ranks lower for average monthly full-coverage rates, while National General can be more competitive for specific driver profiles or high-risk categories.
• Discounts: GEICO is widely recognized for a robust menu of policy discounts, whereas National General features programs like the DynamicDrive app for safe-driving habits.
• Target Audience: GEICO targets mainstream drivers looking for low-cost, 24/7 digital management, while National General often accommodates drivers needing specialized or non-standard options.