L.A. Vehicle Insurer Again Leads State in Ratio of Complaints

A Los Angeles-based auto insurer had the worst ratio of consumer complaints in the industry last year, according to a survey by the California Department of Insurance.

Teledyne Insurance Group was rated worst for the second consecutive year since the state began the survey in 1984.

By only a slight margin, J.C. Penney Co. was ranked second highest in complaint ratios, with 1.087 written complaints for every 1,000 policyholders.

“A pattern of complaints is a pretty good indication of a company’s attitude toward consumers in resolving disputes,” said Steven Miller, director of the Los Angeles-based Consumer Action Network. “Companies ought to make a vigorous effort to clean up their acts.”

The state’s annual survey, released Wednesday, found 81 complaints against Teledyne among its 74,353 auto policyholders. Teledyne sells policies primarily through its Burbank-based Financial Indemnity Co.

Company officials declined comment.

The two companies with the lowest complaint ratios were U.S. Auto Assn. of San Antonio, Tex., which sells to military veterans, and California State Automobile Assn. of San Francisco.

“We’ve got a stringent set of underwriting rules. That’s how we’re able to control costs and keep premiums down,” company spokesman Tom Rohner said.

Ratio Given

U.S. Auto Assn. had a complaint ratio of .094, while California State had a ratio of .114.

Insurance Commissioner Roxani Gillespie cautioned that the survey should not be considered the only factor in considering auto insurance. Consumers should monitor pricing, marketing methods and an insurer’s financial condition, she said.

“It’s important to remember that companies who provide insurance for problem drivers usually generate more complaints than those companies limiting their business to lower risks,” Gillespie said.

The survey considers only the top 25 auto insurers in the state, said David Stolls, chief of the agency’s policy services bureau.

The survey initially named Kemper Insurance as having the worst record of consumer complaints, but state officials admitted Wednesday that was a mistake. The company said its complaint ratio was .943.

Other companies topping the complaint ratio list were Progressive Casualty, .925; Mercury General, .699; Liberty Mutual, .697; Travelers Insurance, .603; Fireman’s Fund, .580; Continental Corp., .573 and GEICO, .542.