LendingTree’s Car Insurance Ratings Methodology : How We Evaluate and Score Insurance Companies
Our goal at LendingTree is to help you make informed decisions in each step of your financial journey. This includes providing you with the information you need to shop for car insurance with clarity and confidence.
Our editorial team independently analyzes data from industry databases and public sources to identify car insurance companies with the best rates, coverage options and customer service. Designed for consistency and fairness, our ratings are based on the factors that car insurance shoppers care about the most.
Here’s a closer look at how our ratings work.
Our methodology categories
We analyze data from third-party sources and insurance company websites to rate them on six primary factors.
Basic cost (40%)
Car insurance rates are obtained from Quadrant Information Services. We analyze quotes from every state to see how each company’s rates for a typical driver compare to national and regional averages. Companies with the lowest rates get the highest score in this category. A typical driver is a 30-year-old with a clean driving record and good credit.
Customer service (30%)
Each company’s customer service rating is based on complaint data from the National Association of Insurance Commissioners (NAIC).
The NAIC tracks confirmed complaints over things like claim payments. A complaint is confirmed when it leads to a finding of fault. Companies with fewer confirmed complaints than average get higher scores in this category.
Coverage options (10%)
The optional coverages that most insurance companies offer can provide valuable financial protection in certain circumstances. We analyze insurance companies’ websites and quoting tools to see how many options they have. Companies that give you more choices get higher scores.
Discounts (10%)
Car insurance discounts can help reduce your insurance rate by a significant amount. Companies that offer more savings opportunities through discounts are rated higher in this category.
Online experience (5%)
We analyze each company’s website and smartphone app to see how easy they make it to get quotes and manage your policy. Companies with user-friendly digital tools that provide helpful information get higher usability scores. User ratings of each company’s smartphone app also factor into this score.
Financial strength (5%)
We check each company’s A.M. Best rating to check its financial strength. Companies with higher ratings get better scores because they have the long-term stability to pay claims.
Our methodology process
Companies are rated in each category on a five-point scale. These scores are used to create a weighted average that reflects each company’s overall star rating, rated to the nearest half-point, with 5 stars being the highest possible score.
Our editorial team applies the same scoring model and standards to every insurance company. While LendingTree may receive compensation when users request car insurance quotes from some companies, compensation does not affect our editorial rankings or recommendations.
Please see our editorial standards for more information.
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