NerdWallet: R.I. Department of Insurance ranked 5th worst in consumer helpfulness

RHODE ISLAND'S website ranked fifth worst in the nation for consumer helpfulness, according to NerdWallet's list of state insurance department websites. / COURTESY NERDWALLET
RHODE ISLAND'S website ranked fifth worst in the nation for consumer helpfulness, according to NerdWallet's list of state insurance department websites. / COURTESY NERDWALLET

PROVIDENCE – Rhode Island has the fifth worst Department of Insurance website when it comes to consumer helpfulness, according to personal finance website NerdWallet.com.

NerdWallet conducted an extensive analysis of all 50 states and the District of Columbia by visiting each DOI website, calling consumer helplines and emailing each insurance department. Departments were then graded on more than 20 factors, adding up to a 100 point scale.

Ranking 47th, Rhode Island received a score of 32 percent for its website under the Insurance Division of the Department of Business Regulation. Connecticut ranked the highest among the New England states at 11th with a score of 74 percent and Massachusetts ranked 30th, along with Maine and the District of Columbia, each with scores of 58 percent. Texas’ score of 98 percent was best in the nation, while no department received a worse score than New Mexico’s 17 percent.

Departments were scored on four categories: Insurance rate comparisons, insurance complaint data, consumer assistance and consumer education and resources. Each measure was weighted to assess quality and the number of points was contingent on how recent the data were.

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Insurance rate comparisons accounted for 22.5 percent of the total score and included points for the presence of recently updated auto and homeowner insurance premium information; the ability to compare auto insurance rate estimates across at least five insurers licensed in the state and four different driver profiles; and how easily this data can be found from the department’s homepage.

Insurance complaint data accounted for 30 percent and included points for the presence of recently updated complaint data across all four major lines of insurance: auto, homeowner, health and life; the ability to compare complaint information across at least two different insurance companies; whether the data were provided context, such as using a complaint ratio or index; and how easily this data can be found from the department’s homepage.

Consumer assistance accounted for 25 percent and included points for the presence of a dedicated consumer helpline or hotline; how easily the phone number can be located; and the likelihood a consumer would receive an answer to their insurance question in a reasonable amount of time. For this measure, NerdWallet called all 51 departments and asked the following basic insurance question, “What are the minimum requirements for auto insurance in this state?” Points were awarded depending on if an answer was received and how long it took to receive it. If it took more than 10 minutes, no points were awarded, as the consumer could have found the answer through an alternate source.

Finally, consumer education and resources accounted for 22.5 percent and included points for the presence of consumer resources for each major line of insurance; how easily resources can be located from the department homepage; the inclusion of a state’s legal auto insurance requirements; a glossary or other explanation of common terms; and whether consumers can look up licensed agents in their state.

Information for NerdWallet’s report was gathered between April and August of 2016.

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